Chip 'n' Pin - A Quick Guide Discussion Area

James

An interesting tale from California re PIN abuse! Can it happen here?

http://www.latimes.com/news/local/la-me-lopez1jan01,1,7697577.column?coll=la-headlines-california&ctrack=1&cset=true

nozza_marc

You can at the moment cancel the pin option and sign the slip that is printed out. But beware of the sometime next month, cant remember the exact date there is a change to the Banks/ clearing houses rulings which will apply to all onilne authorisations. Currently the once a payment has been authorised by the Bank at a till point the Bank agrees to honour the payment that is authorised i,e if a payment is fraudulent, a theif signing a signature is one of the many ways this can happen.

The change being that the onus of honouring the payment will fall on retailer i.e. if the payment is fraudualent the retailer does not receive the money from the bank. There are many different scenarios that these changes impact. One of the measures that retailers are taking to try and cut down on their losses is to make changes to the way C&P cards are processed. If a C&P card is used and the customer does not know their pin they will not be given the option to sign for the goods (in an attempt to protect the retailer from signature fraud). In this situation the customer would have to find another methond of payment.

This may sound a bit harsh onthe customer but I know of a number of retailers that will be enabling this function (given that I work in an envronment that has allot of interaction with retialers which includes their payment processing).

digitalhen

14th Feb is when they are stopping signatures

bank_of_slate

I sometimes take my husband's card to the supermarket to buy groceries (with his permission, he pays for all groceries)

Instead of drawing out the cash that I think I need, I now just use it in the chip & pin machine as I know the number.

Am I terribly naughty for doing this?
...Linda xx

James

Naughty? If you'r husband becomes the victim of card fraud where his PIN and his genuine or a cloned card is used before he reports the loss then he could be held liable for the total cost of the loss.

Here's the Indep. Banking Advisory Services view:

Cash machines (ATM's) are also being heavily targeted by fraudsters and this was the fastest growing form of card fraud in the past year with an increase of 85% to a level of 61 million pounds. Total card fraud stood at 478.8 million a rise of 18%. The advice from APACS on this issue is that customers should check their account regularly so that bogus transactions are spotted quickly. Banks will not pay out on this fraud to protect the customer if the customer is found to have been negligent by leaving their card available for others to use or by having the PIN known or available for use by others.

James

Re above post:

Fraud Victims Left In Lurch by Bank:

http://business.timesonline.co.uk/article/0,,8214-1982203,00.html

Another case of consumers not being believed that they weren't negligent with their PIN.

Russe11

yup its just the case of stick it in and pump away :rotfl:

since the card never leaves your hands how can it be safer ? if the card says MR or MRS its irellavent, also on the receipt does it state the card holders name ? on the chip and pin terminal receipts ?

at least the theives had to only target 50% of the population b4 now if they are trying to steal a card and a pin to use it for there own illegal gains they now have a free choice of targeting males or females or the 5% other

crippled_monkey

Hi all.

There has been a lot on here about chip and pin and the 14th Feb deadline. There is also a lot of mis-information.

Indeed, Martins own money tip this week is not entirely accurate (sorry Martin). From Feb 14th if you do not know your pin then your bank 'May' choose to decline you. They may also choose to allow you to continue and sign. It is expected that they will start softly softly and gradually up the pressure over the following few months. This is a problem for retailers who do not know when/if they will do this and it could make things difficult.

It should be remembered that the retailers have no control over this. All the decisions are made by the bank and the chip on the card.

One thing to remember though, you can still sign if your card does not have a pin or a chip on it.

Hope this helps......

aliciamoss

What about phone and internet card payments? You can't use your pin then.

crippled_monkey

aliciamoss wrote:

What about phone and internet card payments? You can't use your pin then.

These payments are classed as 'unattended' and are dealt with differently by the banks. Retailers pay higher charges for these transactions as the fraud risk is increased.