The PIN Security
PIN numbers are utilised in many credit card payment methods. The PIN number is a selected four digit code known only to the user. This helps to prevent unauthorised use of the card as well as on-line fraud or theft because the point of sale will require the number input. If entered incorrectly after a third time the card is deactivated be a security default and would be rendered useless. Keeping this number safe is paramount because any transaction whether performed by the holder of the card or not is deemed liable by the financial institution on which the card is drawn.
The Chip set
Australia is currently in a changeover moving from traditional magnetic strip credit cards to those with an implanted chip set. More and more credit card payment methods are moving towards this new technology because it stops skimming scams. All credit card machines, ATMs, EFTPOS, and other payment terminals are at risk to skimming scams, which records the information of each credit card swipe and reveals it to a third party end user; until all terminals are updated with chip acceptors. Skimming has become so commonplace that it is estimated that around $2.5 million dollars was lost at Western Australia McDonald’s stores through skimming.
Contactless Payment Processing
Visa and MasterCard have created their own new divisions of contactless payment services. Visa has a system called Paywave and MasterCard has Paypass. These new credit card payment methods are more geared towards smaller transactions such as those at a fuel station or convenience store. All the cardholder has to do is hold the card in front of the card reader for a minimum of one second and the purchase is complete. Any transactions under $35 do not require a customer to sign, which increases the efficiency for daily small transactions.
Security Improvements
With the advent of chip set technology and enhanced combination features of using PIN numbers along with other security measures, credit card payment methods are starting to take on a new shape to help increase speed and efficiency as well as to help thwart fraud and theft. As with any security measure it helps to counteract the crime, not eliminate it. No security measure is fool-proof at this time, but hopefully with advancements in technology the use of credit cards can become completely safe. The chip set technology has had an extremely high success rate in the U.K. with credit card fraud down nearly 90%. Australia is quickly adapting to this technology to hopefully reduce its rate accordingly.
The PIN number, the chip set, and new contactless payment are all relevant security measures for credit card payment methods. The PIN number has been in use the longest and with cardholder care is a valuable security measure. The chip set is the newest technology and is seeing great reductions in credit card fraud. The contactless payment has help provide customer efficiency as well as helping to reduce skimming incidents by not having to swipe the card. Security improvements are being made all of the time in the hopes that one day credit card payment methods will not be compromised.
