Visa Australia kills signatures by 2013

By Suzanne Tindal on 02 November 2009

Visa Australia said today it was moving to chip and PIN technology for all of its credit cards, with signature transactions to be banned by April 2013.

(Credit: Visa, by Declan TM, CC2.0)

The move, instigated to reduce card fraud, involves working with financial institutions and retailers to upgrade over 14 million visa cards, half a million point of sale terminals, and thousands of ATMs.

From January 2010 all new Visa cards will feature smart chips, while debit and reloadable prepaid cards will be updated from January 2011. Currently around 37 per cent of Australian Visa cards are chip-enabled. 100 per cent of credit cards will be chip cards by 1 April 2013. All merchant terminals must be chip-capable by April 2012. All ATMs must be chip capable by 1 January 2011.

"These initiatives are part of a comprehensive security upgrade aimed at providing cardholders with a higher level of confidence and significantly reducing all types of card fraud including counterfeit, skimming and online fraud," Visa's general manager for Australia and New Zealand, Chris Clark said in a statement.

The upgrade will also allow banks and merchants to offer their customers more services such as contactless payments and storing rewards program information on cards.

Moving to chip and PIN was part of Visa's seven-point security agenda, which included using Verified by Visa passwords when shopping over the internet and requiring retailers to capture the three-digit cardholder verification number when processing transactions.

"While card fraud in Australia remains low by world standards, overseas criminals are becoming increasingly active in seeking out new arenas. The time is right to take advantage of the new technologies available to work across the industry, with banks and merchants, to strengthen security across the board," Clark said.

Topics: visa, pin, chip, signature, terminals, credit card, merchant, fraud, cards, australia

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Comments (5)

  • peterh_oz commented on 04/11/2009 17:07 Report abuse

    Why can't we opt in to having PIN only on our cards now?

    What's the point of the PIN when the signature is still valid?

  • TheWayToPay commented on 03/11/2009 16:25 Report abuse

    The fact is that I will only purchase with my Visa Debit via a PIN, as its more secure and no need to write your signature.

    Im with Suncorp, and they offered Verified by Visa as an included free option with my card for online purchases. I just had to register my card with visa for it to be activated. When VBV works you get a password prompt asking for another password - so effectively another security measure - easy and simple.

    Until one day I purchased an item online, and despite me ticking the "verified by visa" option, the box did not appear. I emailed Suncorp and they advised VBV was no longer being used on all accounts, only business accounts. Yet, I was never notified of this by any means whatsoever.

    So, if Visa want to bring these new cards out I think verified by visa for online purchases should be a must.

  • @Comments commented on 03/11/2009 13:33 Report abuse

    I'm not clear on the real advantages here. Yes currently if the store owner does not look at your drivers license to compare names with the card, then the scribble that resembles the signature on the back of the card will suffice, and thus fraud.

    However if the PIN number used for the credit card is known to the kids, or anyone else that can detect it, then how exactly is implementing a PIN on a credit card sale going to make a whole lot of difference. Yes there will be a drop in fraud, no it will not address the matter, only tangible ID will.

  • Skippy commented on 03/11/2009 09:36 Report abuse

    James from the UK,

    We already have Chip and Signature Cards available, and have done for some time. The article is stating that all cards will be Chip and Pin only by 2013. I would assume that they will roll this out in every country, not just Australia. If you can't remember a 4 digit pin code, then perhaps you shouldn't have a card in the first place.
    PIN codes to access money has been around for 30-40years. So those people who can't use a PIN would already have an alternative in place. (ie,cash)

    Let me explain about Australia, we are well informed about the options available, but thanks anyway.

  • James. commented on 03/11/2009 04:59 Report abuse

    Help? I’m a UK Chip & Signature Visa Card holder, hoping to visit your wonderful country again in the future. I’d hate for my card to be rejected at point of sale.
    Let me explain about Chip & Signature Cards, which you the Aussie public it seems aren’t being offered.
    Chip & Signature, vice Chip & PIN Cards are issued in the UK to those, who for whatever reason can’t manage a PIN, or PIN Entry device, or feel unsafe using a PIN. Chip & Signature Cards work in ALL Chip & PIN terminals and are accepted throughout Europe.
    I’d like to know if either Visa (Australia) isn’t informing the Aussie Public of the availability of Chip & Signature Cards, or indeed if retailers will be rejecting Chip & Signature Cards from overseas visitors.
    I hope someone can answer these 2 questions.

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