(26 March 2010 – New Zealand) In New Zealand, signing for credit card purchases is set to become a thing of the past, as Visa moves to chip cards using a Personal Identification Number (PIN) only from 2012.The technology will be phased in for all cards over the next few years with retailers needing to install upgraded units to progress the chip cards.
Visa said that moving to 100 percent use of PIN numbers with credit cards will limit fraudulent transactions in New Zealand.
Sean Preston, Visa’s country manager, said, in an interview, that Visa has been working with the banks and merchants for some time to develop a plan to strengthen its payment network in New Zealand.
Mr Preston highlighted that the move is part of a strategy to combat fraud; adding that, now is a good time to implement the new technology as the cost of it has gone down, while the risk of fraud has gone up.
New Zealand’s fraud levels are reasonably low and the changes are to ensure it remains that way, Mr Preston noted.
Visa says although it will be an adjustment for long time card users, it is confident customers will embrace the changes if it means better security.