Feeds

Chip and PIN gathers pace

Preparing for January liability shift

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Two in five UK cardholders now have chip and PIN cards, as the progress towards introducing a more secure method of authorising credit cards transactions gathers pace. More than 17m next-generation cards have been used issued to date.

The Chip and PIN scheme, which began in October 2003, is designed to make credit and debit card purchases more secure by asking the majority of consumers to enter a four-digit PIN code instead of signing to verify card transactions by 2005. Newly-issued credit and debit cards will come with smart chips to recognise this PIN number when transactions are processed.

The latest chip and PIN barometer, issued yesterday, shows that millions more UK shoppers have received chip and PIN cards and some of the nation’s biggest retailers are now rolling out the new, more secure technology.

Asda and Dixons are among the high street names starting to deploy the technology at their checkouts. Together, these retailers account for some 20 per cent of all plastic card sales made in the UK, so shoppers will increasingly find themselves using their four-digit PIN, rather than a signature, when they go shopping. In total, 305,000 small businesses (55 per cent) - including shops, restaurants, and bars - have already switched over to chip and PIN.

SME retailer survey fails to tell the bigger picture

However, a survey from software firm Retail Logic out earlier this week suggested that many retailers remain sceptical about the benefits of chip and PIN. More than 20 per cent of retailers quizzed said they had decided to put off the upgrade to Chip and PIN until the next time they replace retail (point of sale) terminals.

A spokeswoman for the Chip and PIN project said the research addresses only medium sized retailers, who account for 15 per cent of all plastic card transactions. According to the Chip and PIN Project, the 45 largest retailers are fully committed to implementing chip and PIN. Businesses with bank-owned terminals account for 30 per cent of all UK transactions. Rollout of these terminals will be completed by early 2005, "The really good news is that 54 per cent of smaller retailers will also be ready," she added.

She continued: "The Chip and PIN Programme has been encouraging mid-tier retailers to plan for the liability shift and we will continue to support them. It is, however, up to each business to assess the business risks of not moving to chip and PIN. From 1 January 2005 whoever decides not to make the investment will be liable for fraud losses committed on chip and PIN cards which could have been prevented with chip and PIN technology."

The UK Chip and PIN Programme is part of wider international efforts to tackle counterfeit, lost and stolen credit and debit card fraud. A similar domestic PIN-based system for debit cards in France has seen an 80 per cent reduction in fraud since its introduction ten years ago. ®

Related stories

Chip and PIN goes national
Chip and PIN hits 8 million cards
UK credit card fraud down 8%
Retailers must embrace Chip and PIN. Or else
UK terminally unready for Chip and PIN

Related links

Chip and PIN Programme - "the biggest consumer project since decimalisation"

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.