Visa credit cards opting for smart chip in new year
4 December 2009
In an effort against the increasing threat of online credit cards fraud, Visa have announced that it will soon begin phasing out the traditional "signature" security level for its credit cards products with the company planning to implement PIN and chip security on all its product range.
Starting from January 2010 Visa will now only produce credit cards that are smart-chip enabled while all Visa debit and prepaid cards will start production from January 2011. Currently around 37 per cent of the 14 million existing Visa cards are smart chip enabled with Visa intending to have every Visa card equipped with a smart chip by April 1 2013.
Visa will also be upgrading ATMs and point of sale terminals with the higher levels of technology while ATMs Australia-wide will need to be chip compatible by January 2011.
Visa's General Manager for Australia and New Zealand, Chris Clark, stated that commencing in January 2010 the range of Visa credit cards issued in Australia will only be embedded with secure smart chips.
"To give Australians a higher level of confidence in the security of their transactions," Mr Clark said.
"Chip technology will also offer banks and merchants the ability to provide their customers with benefits such as faster transactions, innovations such as contactless payments and the opportunity to store information such as reward programs on their cards."
A seven point security setting has begun to be implemented on Visa products to complete PIN and smart chip technology. Other steps include better online security through the Verified by Visa password technology which asks that online retailers will now have to record a three-digit cardholder verification number for all online transactions.
Mr Clark stated that the new initiatives were all part of the comprehensive security upgrade that is designed to significantly reduce the various kinds of card fraud including counterfeit, skimming and online credit cards fraud while also improving the overall confidence of cardholders.
"While card fraud in Australia remains low by world standards, overseas criminals are becoming increasingly active in seeking out new arenas.
"The time is right to take advantage of the new technologies available to work across the industry, with banks and merchants, to strengthen security across the board," Clark said.
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