Peak retail industry body the Australian Retailers Association welcomed the Australian Competition and Consumer Commission’s (ACCC) decision to support an industry-wide initiative to move to PIN as the primary method of card verification in Australia.
ARA Executive Director Russell Zimmerman said the phasing out of signature verification by Visa, MasterCard, American Express and participating financial institutions by 1 July 2014 will help protect consumers and retailers alike from fraudsters.
“We know that around 68 percent of Australian consumers prefer Pin payments when purchasing high-cost items*.
“The real change for expanding PIN usage will be a behavioural one. Habits at point of sale will require some adjustment and consideration; however, it is a move that will help safeguard against fraud, making cards even safer to use and is a welcome move by Australian retailers.
“Using a PIN helps protect against fraud due to lost or stolen cards. The chance of someone correctly guessing your PIN, which is usually between four and six digits long, is very small.
“The move from signature to PIN is about strengthening Australia’s payment security security and we applaud the ACCC and the Card Industry Security Initiative.
“Chip-enabled cards that allow PIN and contactless at point of sale use some of the most advanced security technology available. While Australia’s payment system is already safe, this initiative is a move to make the way we pay even safer,” Mr Zimmerman said.
Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $258 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. Visit www.retail.org.au or call 1300 368 041
* Australian Consumer Payment Snapshot Report 2013 conducted by Pureprofile,
November 2013. Data captured 1,253.
The Card 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.