Feeds

Chip and PIN gathers pace

Preparing for January liability shift

  • alert
  • submit to reddit

Reducing security risks from open source software

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"

Eight steps to building an HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.