Mortgages

Chip and Pin Security

credit card To help combat the huge amount of credit card fraud that costs companies millions each year the Chip & Pin system was introduced to UK borrowers in October 2003. In France the system has already reduced credit card fraud by around 80%.

The Micro Chip is actually embedded within your debit or credit card. The chip holds all your personal information relating to the card including your name, the card number and its expiry and start date information. This new chip technology then checks the PIN you entered in the keypad against the PIN held on the chip. This technology has now meant that signatures are not now required at time of purchase using a Chip and Pin Card and instead just entering the 4 digit pin number at the checkout much like you would at a cash machine is now all that is needed.

 

compare credit cards However if you are in possesion of a chip and Pin card you will have no option to sign for any purchases after 14 February 2006 when all chip and PIN cardholders must use their PIN to be sure they can pay for their goods and services.

The system verify's the card user's identity at POS (Point-of-Sale) transactions in shops, hotels, petrol stations etc. Instead of asking for your signature, the shop assistant or desk clerk will ask you to enter the four-digit pin number, which you normally use with your credit or debit card, on a special keypad. The four-digit code is the same number you would use at an ATM to withdraw cash.

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