If you purchase goods with a credit card, there is an important change being introduced from 1st August 2014. We simply wanted to remind people that from this date, people will no longer be able to sign to authorise a credit card transaction at point of sale - and to ensure that they have a PIN from their financial institution.
The PINwise Industry Security Initiative has announced that PIN will become the main form of card payment authorisation in Australia, moving totally away from requiring a signature to authorise a transaction.
The industry-wide move to expand PIN at the point of sale (POS) and phase-out the signature as a form of verification on Australian chip credit and debit cards will take place from 1 August. All financial institutions are involved in this initiative - it is not bank specific.
There will be no change to contactless (such as PayPass) or online transactions.
Visit pinwise.com.au for more information about this industry initiative.
Why use a PIN, rather than sign?
- It's more secure than signing – It’s easy for someone to see your signature, but only you know your PIN. Using your PIN for purchases on your credit and debit cards is safer than signing and makes it harder for card fraudsters. There’s only a 1 in 10,000 chance of somebody guessing your PIN.
- Faster and more convenient – using your PIN is quicker than signing. Just enter your PIN and you’re done.
- Some overseas retailers only accept PIN authorisation – some overseas retailers only accept PIN to authorise credit and debit card transactions. So ensure you know your PIN if you’re travelling overseas. Australia is also moving towards replacing signature with PIN for all purchases.