NO PIN, NO PAY
1 August 2014,
PIN officially becomes the main form of card payment authorisation today, with the Australian Retailers Association reminding consumers of ‘no PIN, no pay’.
Executive director Russell Zimmerman says people must memorise their credit and debit card PINs to avoid being stranded at the check-out.
“The ARA is urging all cardholders without a PIN to contact their bank or card issuer immediately,” Zimmerman says.
“Retailers have been busy preparing for August 1, when over the next three months 800,000 merchant payment terminals nationwide will begin to undergo a software update – rendering the signature obsolete.
“The move to PIN is an important step to maintain a high level of integrity and security within Australia’s card payment system.”
Zimmerman says the system is a better safeguard against fraudsters, with only a one in 10,000 chance of someone guessing the correct number.
Payment company eftpos has embraced the introduction of PIN only authentication, urging shoppers not to panic.
CEO Bruce Mansfield says although some consumers might not remember their new credit card PIN, they will be able to recall their eftpos one.
“While there may be some issues with PINs on credit cards and scheme debit on Friday, most consumers are very familiar with their eftpos PIN which is the same as their ATM PIN,” Mansfield says.
“If retailers come up against any problems, they should just ask if the customer has an eftpos card, or any other card that supports eftpos CHQ and SAV transactions.
“The chances are they will remember their PIN and be able to make the transaction.”
Mansfield says the company is looking at ways to encourage tipping at restaurants, with some new terminals offering a tipping option.