From July 1, punch in PIN after swiping card at outlets as an additional security measure.

The next time you offer your debit/credit card at a restaurant , don’t be surprised if the waiter brings the payment device and asks you to punch in your secret number.
From July 1, credit card users will have the option of punching in the personal identification number (PIN) as an additional security measure while making payments at merchant outlets. This is in addition to signing the charge slip on completion of a purchase. This is part of a move by the RBI to secure card payment transactions in the face of rising cyber fraud. Banks have seen 30cr unauthorized transactions.

With cyber attacks becoming more unpredictable and electronic payment systems becoming vulnerable to new types of misuse , it is imperative that banks introduce certain minimum checks and balances to minimize the impact of such attacks ,” RBI said in a circular.

In recent times, top banks in the country have seen unauthorised transactions to the tune of nearly Rs 30 crore. The crimes have been traced back to an international syndicate, which bankers believe is capturing card information through retail outlets that have been compromised. Banks have even had to resort to recalling cards after a cloning scare.

While punching in the PIN will be an option for card users as of now (they can choose not to use the feature), the banks which set up swiping machines will have to ensure that the devices are PIN-number compliant . “This is basically a second layer of security. In case of theft, the person who has stolen the card will not be able to use it if the consumer has punched in his PIN number before,” KVS Manian, head, consumer banking , Kotak Mahindra Bank said.

Also, banks would need to convert their existing magstripe cards to chip-based ones for all those customers who have used their cards outside the country at least once. This is being done because cloning of cards often takes place when cards are swiped abroad, especially in some Southeast Asian countries that are notorious for cloning. In effect, cards with international usage will have to be essentially chip-based and PIN-enabled by June 30.

Some banks like HSBC have communicated to their customers that beginning June 30 they would have to punch in their six-digit debit card PIN to authenticate a purchase. “You will have to enter your debit card PIN on the swipe machine, in addition to signing the charge slip, to complete the payment, failing which the transaction will be declined,” the bank said in a communique. “Customers who have used their debit cards abroad will be issued a new card starting June 2013,” the bank said.

Source: Economic Times

 

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About CPWD Engineers' Association

It is a great pleasure to inform you that CPWD Engineers Association has launched its Blogging page. Now this page will bring to you latest developments/activities of our Members. All efforts are being made to ensure that this website caters to the requirement of CPWD Engineers so far as their various information through this Association is concerned. In course of time this page would be the most useful source of information and would reduce the gap between the Engineers and this Association. Please must inform to other members too. This page is added for various interesting things, Important News & Activities of Association .

Posted on Wed, May 29th, 2013, in General Knowledge. Bookmark the permalink. 1 Comment.

  1. it is doubly secured when you swipe the card yourself to ensure the amount of payment transacted. Very good.

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