Visa and Mastercard reject signatures for PIN@POS

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 PIN@POS, 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