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You are here: Home -> Consumer Corner -> Payment Types -> Payment Cards -> Security Developments in the Card Payments Industry A A 

Chip and PIN
Chip and PIN technology was introduced to reduce card fraud. Instead of signing a paper receipt to verify a card payment, you now enter a 4-digit Personal Identification Number (PIN), just like you do at a cash machine (ATM).

There are a number of important exceptions where cardholders can continue to sign, including:

• Cardholders who have an old style card that has yet to be upgraded to Chip and PIN
• Cardholders from overseas who have an old style card that has yet to be upgraded
• Disabled cardholders who own a chip and signature card
• Counterfeit, lost and stolen card fraud levels have reduced by over 60% due to the implementation of Chip and PIN. This downward trend continues

 

Card Security Code

The card payment industry developed Card Security Code (CSC) to help prevent fraud on CNP transactions. For most payment cards this is the 3-digit number printed on or just below the signature panel on the back of the card. For AMEX, this is a 4-digit number on the front of the card. CSC is used in a CNP environment to help retail staff to verify that customers have the card in their possession.

CSC is used to stop fraud attempts when an unauthorised person obtains a card number and a valid expiry date and tries to carry out transactions without the cardholder’s knowledge.

 

3D Secure: Verified by Visa and MasterCard SecureCode
3D Secure is the collective name given to a security tool for Internet transactions developed by Visa (called Verified by Visa) and MasterCard (called MasterCard SecureCode). The security measures provide a more secure approach to credit and debit card transactions over the Internet. Cardholders enroll their card details and secret passphrases with their card issuers for use during Internet shopping to verify their identities. This tool allows cardholders to verify themselves with Internet retailers who are not in a position to swipe the card or obtain a PIN.

 

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