Nearly a quarter of Australians could be left at the checkout come 1 August
Announcement posted by Industry Security Initiative 02 Jun 2014
- Message to Australians: Get PINwise now
- New research shows 18 per cent increase in PIN use among Australians who carry a credit card in their day-to-day wallet1
“Come 1 August 2014, Australia will phase out accepting signature as a valid form of authorisation on chip-enabled credit and debit cards. Today is the time for all Australians to prepare for this move. Without a valid form of authorisation, some may find themselves unable to pay for goods including petrol and groceries. To ensure successful transactions at the checkout post August 1, we’re encouraging all Australians to become PINwise today.”
The industry-wide move to expand use of PIN at the point of sale (POS) and phase-out the signature as a form of verification on chip-enabled Australian credit and debit cards will take place over a short transition period starting from 1 August this year. The effort is a national bid to strengthen the security of Australia’s payment system.
Since the PINwise campaign was announced late last year there has been an 18 per cent increase in PIN usage among Australians who carry a credit card in their day-to-day wallet. There are, however, some pockets of late adopters that are yet to practice using their PIN.
“The message is clear and simple; time is no longer a luxury. You need to increase your PIN use today,” says PINwise spokesperson and founder of TheMoneyMentorWay.com, Nicole Pedersen-McKinnon.
“If Australians don’t know their PIN come 1 August, they may not be able to transact in a normal manner using their credit or debit card. This could create embarrassing yet avoidable scenarios. Being PINwise and getting used to using your PIN is the only way to avoid this drama,” she says.
Research from the PINwise Payment Behaviours Report1also found that:
- Over two thirds (67 per cent) of Australians believe the move to “PIN only” technology is a positive step towards improving the security of Australia’s payment industry
- Well over-half the nation (57 per cent) believes that the likelihood of fraud occurring in Australia will reduce once signatures are phased out on credit and debit cards
- Increased PIN use will not influence the shopping behaviours of Australians, with a slim 9 per cent of respondents indicating that the move may impact how they purchase at point of sale
“Most Australians are now well and truly aware that they have just under two months left to become PINwise. The countdown is on as we prepare to say goodbye to signature authorisation on Australian chip-enabled credit and debit card purchases for good,” adds Pedersen-McKinnon.
Starting with some of the nation’s largest merchants, the move will see all of Australia’s 800,000 merchant payment terminals undergo updates to no longer accept signature as the main form of card authorisation for most Australian cardholders.
There will be no change to contactless or online transactions. Signature will still be a valid form of payment authorisation for visitors from overseas.
1 SOURCE: PINwise Payment Behaviours Report by the Industry Security Initiative and PureProfile, April 2014
2 SOURCE: Financial institution data. Figures are based on cardholder behaviour data provided directly from card Issuers.
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For more information please contact:
Clementine Stuart-Russell Kelly Drew
The Origin Agency The Origin Agency
e. c.stuartrussell@originagency.com.au e. kelly.drew@originagency.com.au
p. 02 8281 3843 / 0414 490 092 p. 02 8281 3824 / 0418 486 959
Notes to editors:
- Visa payWave, MasterCard PayPass, and contactless payments from providers including American Express will not change in light of this announcement.
- Cards without an imbedded-chip will still be able to use signature for authorisation until their card is replaced with a chip-enabled card by their bank.
The Industry Security Initiative (ISI) comprises representatives of ten Australian financial institutions including all of the major card issuers plus Visa, MasterCard™, American Express, and Diners Club International. The initiative members represent the payments card industry and their role is to ensure that there is a consistent experience for consumers when using their credit or debit card to pay for purchases in Australia, regardless of the financial institution that issues the card.
About PINwise
Being “PINwise” means using a PIN to confirm your identity when you use your credit or debit card to conduct a transaction at a point of sale in Australia. Using a PIN helps protect against fraud due to lost or stolen cards. This is because the chances of someone correctly guessing your PIN, which can be from four to six digits long, is very small. More information can be found at pinwise.com.au.