Chip and PIN turned ten years old in May. In May 2003 the first trials of the technology, which would eventually change the way that consumers pay for their goods, began in Northampton. A year later the new payment form was considered so successful that it was rolled out across the rest of the UK and was universally introduced on Valentine’s Day, aka PIN Day, in 2006.
Since that time Chip and PIN has been associated with a dramatic drop in some – though not all – types of card fraud. In August 2006, APACS (UK Payments Administration), noted a reduction of nearly £60m in counterfeit and fraud on lost and stolen cards in the six months since PIN Day. In 2012, the UK Card Association said skimming/cloning fraud had fallen dramatically, from £144.3m in 2007 to £42.1m.
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someone manually write their cheque guarantee card details on the back of the paper was known to be a slow and testing experience. Now
transactions are completed in seconds. Card in, PIN in, card out, done. The weekend shop is now a far more pleasurable one, and customers no longer have to factor an extra 20 minutes of time at the till. The consumer’s need for speed since the introduction of Chip and PIN, and the move away from signature validation, has led to an increase in the use of self‐service tills. While these tills still effect a marmite reaction, they do help thousands of customers experience a streamlined
Watching someone manually write their cheque guarantee
card details on the back of the paper was known to be a slow and testing experience. Now transactions are completed in seconds. Card in, pin in, card out, done.
This reduction in fraud has changed the attitude with which consumers shop. Knowing that cards cannot be used in‐store without a PIN, patrons feel less at risk of card theft and fraud, and have a much greater sense of security. When paying by card required only a signature ID, the fear of fraud meant people were more inclined to pay using cash or a revocable cheque. And it’s proved a great time saver too. Gone are the moments of frustration caused by being caught behind a person paying for their goods by cheque. Watching
shopping experience, scanning and paying for goods without the need to wait on the actions of a checkout assistant. But it’s not just about speed. Many consumers appreciate the feeling of privacy and anonymity that self‐service tills bring. Since the introduction of Chip and PIN, alongside other initiatives, card payments have increased in popularity, and the majority of consumers now carry debit or credit cards on them most of the time. This has led to an increase in impulsive spending: 47 per cent of 18‐24 year olds (34 per cent of all adults) admit to purchasing on impulse. This is something that is harder to do when paying by cash: 62 per cent of people carry £20 or less on them.
Britain is now a mature Chip and PIN nation. After years of relying on slow and frustrating payment methods, the consumer uptake of Chip and PIN debit and credit cards was rapid: six months on from
PIN Day more than 150 Chip and PIN transactions were taking place every second. Since then many other payment technologies have been introduced, but, to date, none has had the dramatic effect nor been as popular with UK consumers. Chip and PIN has changed people’s approach to shopping, and it is doubtful that any would choose to return to a time before chipped cards became an intrinsic item in their wallets.
Contact CardSave T: 0808 149 5299 W:
www.cardsave.net
www.a1retailmagazine.com
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