We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

Safer payment on its way

Chip and PIN credit card rolled out

A group of banks, high street stores and local shops today rolled out safer credit and debit cards, dubbed Chip and PIN, to fight the growing tide of credit card fraud.

Fraud costs the industry around £400m a year with thieves swiping credit cards through electronic machines to record details stored on the metal strip — located on the back of the card.

The Chip and PIN card, first announced back in May, replaces this strip with an allegedly crack-proof chip. The card's owner will have to enter a four-digit PIN number into a handheld device, provided by the retail outlet, to complete the transaction, replacing current signature authorisation.

"The rollout is a huge task with more than 850,000 shop terminals, 122 million cards and 40,000 cash machines being upgraded and 2.7 million retails staff being trained, so it won't happen overnight. There are household name retailers in every sector who are committed to making this happen by the end of 2004," said Amanda Miller of the British Retail Consortium.

The card is expected to be rolled out across the whole of the UK by 2005, with one in five credit card owners expected to be using the new Chip and PIN technology by Christmas this year.

A similar domestic PIN-card in France has reduced credit card fraud by 80 percent since its introduction 10 years ago.

IDG UK Sites

Best Christmas 2014 UK tech deals, Boxing Day 2014 UK tech deals & January sales 2015 UK tech...

IDG UK Sites

Chromebooks: ready for the prime time (but not for everybody)

IDG UK Sites

Hands-on with Sony's latest smartglasses

IDG UK Sites

The 13 most inspirational Tim Cook quotes