Saturday, April 13, 2013

Punch your Credit/Debit card PIN for payment at Merchant outlets from 1 July 2013

From 1 July when  you offer your debit/credit card for shopping at mall/or payment of bill of your shopping  , don't be surprised  the payment device will asks you to punch in your secret number. From July 1, credit card users will have the option of punching in the personal identification number (PIN) as an additional security measure while making payments at merchant outlets. This is in addition to signing the charge slip on completion of a purchase. This is part of a move by the RBI to secure card payment transactions in the face of rising cyber fraud. Banks have seen 30cr unauthorized transactions.

With cyber attacks becoming more unpredictable and electronic payment systems becoming vulnerable to new types of misuse , it is imperative that banks introduce certain minimum checks and balances to minimize the impact of such attacks ," RBI said in a circular.

While punching in the PIN will be an option for card users as of now (they can choose not to use the feature), the banks which set up swiping machines will have to ensure that the devices are PIN-number compliant . "This is basically a second layer of security. In case of theft, the person who has stolen the card will not be able to use it if the consumer has punched in his PIN number before