Signatures 'just as secure as Pin'
The UK's payments body has moved to reassure retailers that cards which require a signature are just as secure for them to accept as those which need people to enter a pin.The Payments Council said it wanted to raise awareness after more than a quarter of people who took part in a mystery shopping exercise using a chip and signature card felt embarrassed or anxious, often due to a lack of awareness among store staff at how the card worked.
The Council said that a "common retailer misconception" about accepting cards which need a signature is that the retailer becomes liable for any fraud rather than the bank. But it said: "In fact, as long as the retailer carries out the necessary security checks of both the card and the signature, the retailer benefits from the same high level of fraud liability protection as with any pin-verified transaction."
Chip and signature cards can be given to anyone who has trouble entering a pin, due to problems with movement, eyesight or their memory. They look the same as standard chip and Pin cards but when they are inserted into a terminal a signature is automatically required.
Adrian Kamellard, chief executive of the Payments Council said: "There are many cardholders only using a signature, which is why it's vital that retailers know that they can accept chip and signature cards from these customers with confidence. They just need to follow the prompt on their point-of-sale terminal which will advise them to accept a signature."
Banks are obliged to offer chip and signature cards and retailers are obliged to accept them, under the terms of the Equality Act.
There are an estimated 10.9 million disabled people in the UK, and with an ageing population, the number of people suffering from memory or mobility problems or visual impairments is likely to rise, making chip and signature cards increasingly important, the Council said.
The body is trying to raise awareness about the cards among bank and store staff and it is contacting charities so that people who could benefit from the cards take them up. The body has made a training factsheet and video for retailers on non-pin transactions on its website - paymentscouncil.org.uk.
Michelle Mitchell, charity director general of Age UK said: "Chip and signature cards which don't require a pin can make paying for shopping much less stressful for many older people who may struggle with remembering codes and entering them.
"For some, chip and signature cards mean that they can have total control over their finances and will not have to ask someone else to get cash for them. It's important that the public is aware that chip and signature cards are available from banks and building societies and that every retailer is obliged to accept them."
Banks are obliged to offer chip and signature cards and retailers are obliged to accept them, under the terms of the Equality Act.
There are an estimated 10.9 million disabled people in the UK, and with an ageing population, the number of people suffering from memory or mobility problems or visual impairments is likely to rise, making chip and signature cards increasingly important, the Council said.
The body is trying to raise awareness about the cards among bank and store staff and it is contacting charities so that people who could benefit from the cards take them up. The body has made a training factsheet and video for retailers on non-pin transactions on its website - paymentscouncil.org.uk.
Michelle Mitchell, charity director general of Age UK said: "Chip and signature cards which don't require a pin can make paying for shopping much less stressful for many older people who may struggle with remembering codes and entering them.
"For some, chip and signature cards mean that they can have total control over their finances and will not have to ask someone else to get cash for them. It's important that the public is aware that chip and signature cards are available from banks and building societies and that every retailer is obliged to accept them."
© 2013 Press Association