Credit card signature payments won't be scrapped just yet.
Credit card users not yet ready to switch to pin-and-chip payments have been given a breather with Visa pushing back the date to scrap credit card signature payments.
Credit card signature verification was meant to be put to retirement by Visa as of 1 April this year, however it seems that Australians are not quite ready to make the switch and the deadline has been pushed back to an uncertain date but most likely around the end of 2014, reports the News Limited Network.
"The reason for shifting our date is to align ourselves with the rest of the industry," said Visa country manager Vipin Kalra.
Too large a percentage of the population are still signing for their payments, making educating credit card users on the use of chip-and-pin necessary before signature payments could be removed, according to Mr Kalra.
"It's merely knowing what your PIN is, which is the barrier for the ones that never use them for payment transactions," according to Jost Stollman of Tyro Payments.
The change in payment method was not only meant to make purchasing goods more convenient for shoppers but also provide more security and protection against fraud. The Australian Payments Clearing association statistics show over 1.2 million fraudulent transactions worth over $285 million in 2012.
And it's not just Visa who see the pin-and-chip as the more secure payments method over signatures, with Mastercard spokesman David Masters agreeing that the widespread use of pin numbers will dramatically reduce the cases of fraud.
Credit card users looking to swap their card to the more secure chipped version should enquire with their bank. And those seeking to change their credit card outright for better rates, rewards and low balance transfers should do a credit card comparison to find the best the best credit card offers in Australia
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