Visa and Mastercard reject signatures for [email protected]

The Australian Competition and Consumer Commission has given Visa and MasterCard permission to work to phase out signatures for card transactions.

Under the terms of the proposed plan, called [email protected], from March 14 next year merchant terminals will be required to enforce PIN on eligible transactions.

In other words, if a transaction requires a PIN the terminal will not process a transaction without the PIN. From June 30 signatures will no longer be accepted. The new rule will not apply when a magnetic stripe is used to activate the transaction; it will only apply when the chip is used.

Visa and MasterCard estimate that about 45 per cent of cardholders do not use PINs when they make payments.

Source: Banking Day