Visa set to completely scrap signature payments
Article by Mozo
Visa has announced that people will have to use a PIN code when making a credit card payment from April 2013.
At the moment, Aussies can still sign their name when using their plastic in a shop or restaurant, but this will no longer be the case in six months' time, the News Limited Network reports.
Independent Eftpos company Tyro Payments' spokesman Garry Duursma told the news provider that removing the old system would help to boost security.
"By forcing a customer to use a PIN you should be reducing the amount of card-present fraud that occurs in the market," he was quoted as saying.
Cases of fraud on signature-based credit card transactions more than doubled between 2009 and 2011 and it is hoped that the PIN code system will reduce this risk.
A recent study commissioned by National Australia Bank found that younger people are turning away from credit cards and now prefer to use debit cards.
Either way, it is important that Aussies do their utmost to protect their PIN numbers when using plastic products.
Have a question about credit cards? Ask the money gurus at Mozo Answers.