Our team investigates the new PIN option on credit cards: why it was introduced, why you should use it and whether you can continue to sign for your purchases.
Why was it introduced?
The measures were introduced to Australia last year and were aimed to bring us into line with European countries where PIN numbers were already accepted to authorise transactions. For now, consumers can choose to authenticate their EFTPOS credit card purchases by signing or by entering a PIN number.
There is no added security benefit. You're still required to sign the back of your card (even if you intend to use a PIN number for all of your purchases) and you cannot remove the signature payment option from your card.
Why should I use it?
The measure is intended as an enhanced convenience. Using a PIN is usually faster than signing for a purchase and waiting for the point-of-sale operator to authenticate your signature.
Can I continue to sign for my purchases?
Yes, for now there are no plans to phase out signatures on credit cards.
Some cards don't support PIN numbers. For those, signing will remain the only option.
What do I have to do to use a PIN?
Contact your bank and confirm your credit card supports PIN numbers, then ask them to issue you with a PIN on your card. You may need to go into a branch to do this.
Will I be charged more?
No. If a merchant attempts to charge you more for using a PIN number, contact your financial institution or a regulatory authority.
Will my PIN be different than the PIN I use for savings or cheque?
No, not if you use the same card for those accounts. The PIN relates to the card and not the account.
