- Courtesy of Pixabay
Banks and merchants here in the States are aiming to join other markets across the world with some new, safer purchasing technology for their customers.
The new system will require customers to enter a PIN when authorizing their credit card purchases, instead of signing a receipt. The United States is the only one left in the world’s major markets still using the signature method. Unfortunately, credit card fraud also happens more frequently here.
Little by little, banks are expected to transition to the so-called “chip and PIN” method, upgrading their equipment to handle the new system. “Chip and signature” will still be an option with the new equipment; it maintains its popularity because of convenience.
Financial corporations Visa, MasterCard, and American Express are pressuring both banks and merchants to switch, though. They’ve announced that if, by October 2015, banks or merchants do not have the facilities to accommodate a customer with a “chip and PIN”, or if they acquire the new technology and don’t distribute a PIN to a customer, the bank and/or merchant will be completely responsible for any instances of fraud.
Of course, no method is entirely fraud-proof, and thieves will more than likely find ways to get their hands on PINs, which researchers have already pointed out.
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