In an effort to combat credit card fraud credit firm Visa in on the way to phasing out signature authorizations for purchases. In 2013, personal identification numbers (PIN) will be used instead. Visa will also increase the inventory of chip implanted cards and readers that are in use at some retailers now. Click below for more info.
From April 1, 2013, all Visa card transactions will be approved by customers using personal identification numbers instead of signatures.
The move is expected to reduce signature-based credit card fraud which has been on the rise over the last two years – from 38 out of 100,000 transactions in 2010 to 52 out of 100,000 transactions in 2011.
Visa spokeswoman Judy Shaw said the change was part of a comprehensive security plan to phase out the use of signatures in favour of PIN and card chips, which are already widely used by customers in stores and ATMs.
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“At the moment we’re working with financial institutions and other card schemes to discuss a uniform approach to chip and PIN use across the industry,” she said.
