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Safety in numbers: to date there have been 45 million successful chip and pin transactions. retailers should make sure they convert before the January 1 fraud liability shift
Latest figures show that more than 60 per cent of cardholders now have a chip and PIN card in their wallets, and household names including Tesco, Homebase, Comet, Dixons Group, Wilkinson and Asda are joining the ranks of retailers with upgrades either complete or in progress across their stores.
To date, more than 45 million successful chip and PIN transactions have taken place at almost 400,000 tills in shops, restaurants, bars and other businesses across the UK. And the latest independent research shows that three quarters of businesses welcome chip and PIN as a way of making card payments safer.
LIABILITY SHIFT
At the till or checkout, it's important to get chip and PIN cardholders to start entering their PINs, rather than signing, as soon as possible. This will make sure that customers are using their cards securely and that your business is fully protected from the cost of card fraud in advance of the liability shift on January 1, 2005.
After this date, if a business owns its own electronic point-of-sale (EPoS) system, fraud committed on chip and PIN cards at the-point-of-sale which could have been prevented using chip and PIN technology will become the responsibility of the outlet where the fraud took place--the bank will no longer pick up the bill.
The liability for fraud committed on magnetic stripe cards remains with the card issuer, and there is no change for the cardholder.
STAFF TRAINING
The introduction of a new more secure way to pay isn't just about rolling out the technology, it's about making sure that all staff at the point-of-sale are fully chip and PIN-enabled too.
Chip and PIN is genuinely easy to use, and training does not take long for each employee. Everyone working at the point-of-sale simply needs to make sure that whether they dip the chip or park and ride--the chip on a card always gets read.
Most staff need to know what to do if a customer doesn't know their PIN when they're at the till or checkout. There are a number of simple measures which can be adopted to combat this issue.
One supermarket checkout supervisor told us that the team at the tills found that asking, "Please enter your PIN" resulted in far fewer 'forgetful' customers than if they asked, "Do you know your PIN?"
It's worth staff reminding customers who aren't sure about using the new technology that the PIN they use at the till is the same one as they would use for withdrawing cash, and that they can change their PIN to something more memorable at a cash machine or by contacting their card issuer.
SAFER SHOPPING
Staff at the point-of-sale are also in a perfect position to reassure customers that it's much safer to use PINs than signatures. When a similar system was introduced in France, card fraud fell by 80 per cent.
Some customers, for whatever mason, may feel they can't or don't want to enter their PIN, but research shows that once people have tried using chip and PIN they find it as easy or even easier than signing.
By persuading people to 'give it a go' and use their PINs sooner rather than later it creates a real security benefit for all cardholders.
To alleviate any concerns customers may have about using the new technology, businesses can play a major role by making sure that privacy shields on PIN pads are fitted correctly and that customers aren't overlooked by staff, other customers or CCTV cameras when entering their four-digit PIN.
At the point-of-sale customers should be encouraged to pick up the PIN pad where possible, and to use their hand or body as a shield when they key in their PIN.
FINDING OUT HORE
The chip and PIN website--www.chipandpin.co.uk--is full of advice and guidance. The site has useful publications available for retailers and other businesses, including:
* "Get ready for chip and PIN" a guide to implementation
* Chip and PIN Directory of Vendors
* Customer leaflet with information for cardholders
* Information video for staff training purposes
* "Top chip and PIN tips", free to download copy for use in your own staff leaflets
* A retailer report on the Northampton trial
Copies of these materials can be ordered through the website. The site also includes frequently asked questions with easy-to-follow answers for businesses, staff and customers.
five things to think about
Five things to think about when installing chip and PIN technology
* Is the PIN pad somewhere it can easily be reached by all customers, including those in wheelchairs?
* Will cardholders be able to enter their PINs securely, without worrying that they are being overlooked?
* If your terminal was at the back of the counter, are wires and power points in the right place for moving the PIN pad to the countertop?
* Have you trained your staff on how to process chip and PIN transactions?
* Can your staff advise customers who may have questions about chip and PIN?
COPYRIGHT 2004 DMG World Media Ltd.
COPYRIGHT 2005 Gale Group
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