Chip and PIN 'success'Chip and PIN hailed as success at combatting fraud

14 February 2007

Chip and PIN's official UK rollout celebrates its first anniversary today

Since the official changeover to chip and PIN on February 14 2006, financial institutions have seen levels of card fraud slump and queues shorten at tills, according to reports.

Figures from APACS - the UK payments association - show that 185 chip and PIN transactions now take place every second.

This compares with the 125 every second which took place a year ago.

Users more accustomed

The increase in usage has been aided by evidence that consumers have become more accustomed to using their PIN since last year's changeover, with retailers reporting that transaction times have sped up over the last year.

UK banks and card companies have now issued 138 million chip and PIN cards, representing 97% of the UK's 142 million payment cards, statistics show.

Largely as a result of chip and PIN technology, total card fraud losses fell in 2005. And with the rollout of the system throughout the UK in February last year, figures are expected to show a further improvement this year.

Sandra Quinn, director of communications at APACS, said: ‘The rollout of chip and PIN has been a tremendous success. Chip and PIN cards now account for 97 per cent of all payment cards in circulation in the UK.

Safer to use a card

‘As a result, it is now safer than ever to use your card when shopping, and far more difficult for fraudsters to get access to your money.’

She added: ‘The UK is leading the way in identifying and developing technology to address card-related fraud. We are fully committed to tackling card fraud in all its guises and will continue our work to enhance security across all types of payments.’

'Reduction in card fraud'

Commenting on the anniversary of chip and PIN, Robert Kenley, head of credit cards at moneysupermarket.com, said: "Chip and PIN has made a significant impact on reducing card fraud, figures show that total card fraud is down by 5 per cent.

He added that pioneering technology that will utilise chip and PIN technology to safeguard people from fraud when buying over the phone or internet is set to protect consumers further and ‘revolutionise’ the payment card market

 

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