Anxious consumers will have to swipe their credit cards and debit cards a little longer, as both VISA and MasterCard have given retailers an extension to implement the "Chip and PIN" system that better protects against credit card fraud and identity theft.
In 2008, debit card issuers in Canada began inserting smart chips in debit cards as part of a trial of chip and PIN technology. These cards, combined with chip and PIN point-of-sale terminals, provides a great level of security in debit transactions, protecting customers against fraud. After a successful trial, MasterCard Canada and Visa Canada announced that retailers had to implement chip and PIN terminals by October 2010 in order to escape liability for fraudulent debit card transactions.
However, many retailers have not been able to implement chip and PIN terminals; the recession and other issues have made taking on the cost of new terminals somewhat prohibitive. In order to give more retailers a chance to get their terminals in place, MasterCard Canada and Visa Canada are allowing retailers until March 31, 2011. After this point, retailers not using chip and PIN terminals will be liable for fraudulent debit card transactions -- and not the credit card companies.
MasterCard Canada and Visa Canada cite the upcoming holiday shopping season for the delay. This way, retailers can get through the busy season before switching out point-of-sale terminals.
Not all card companies are requiring the same liability time table, though. Interac has not set a date at which retailers become liable for fraudulent debit transactions, but it is requiring that retailers shift to chip compliant devices by the end of 2015. American Express Canada has also declined to set a date shifting responsibility for fraudulent debit transactions.
Adding a smart chip to debit cards changes the way transactions are carried out at registers. Instead of simply swiping the card, the card is held at the terminal, with the chip in the card able to share information. The chip makes it more difficult for fraudsters to create counterfeit debit cards. Other than the terminal holding the card during the transaction, very little is changed about the way debit transactions are handled. However, chip and PIN technology is considered important, since debit fraud has been on the rise in Canada.
As far as liability for debit card fraud, and identity theft, customers are still protected in any case. If your MasterCard Canada or Visa Canada debit card is used in appropriately, you still have liability protection, since either the card company or the retailer will be liable.
Image source: Channel R via Wikimedia Commons
Trackbacks/Pingbacks
[...] the transaction, very little is different about the way debit transactions are handled. However, smart debit card technology is considered important to identity protection, since identity fraud has been on the [...]
[...] during the transaction, very little is new about the way debit transactions are handled. However, smart debit card technology is considered vital to protection against identity fraud, since identity theft has been [...]
[...] the transaction, very little is different about the way debit transactions are handled. However, more secure debit card technology is considered important to identity protection, since debit fraud has been on the rise [...]
[...] the transaction, very little is new about the way debit transactions are handled. However, more secure debit card technology is considered vital to protection against identity fraud, since identity theft has been [...]
[...] during the transaction, very little is new about the way debit transactions are handled. However, chip and PIN technology is considered an important step forward in the fight against identity thieves, since use [...]
[...] during the transaction, very little is new about the way debit transactions are handled. However, chip and PIN debit card technology is considered important to identity protection, since use of debit cards in identity [...]
[...] the transaction, very little is new about the way debit transactions are handled. However, smart chip technology is considered an important step forward in the fight against identity thieves, since [...]
[...] the transaction, very little is changed about the way debit transactions are handled. However, chip and PIN debit card technology is considered vital to protection against identity fraud, since use of debit cards in [...]
[...] the transaction, very little is different about the way debit transactions are handled. However, chip and PIN technology is considered vital to protection against identity fraud, since debit fraud has been on [...]
[...] during the transaction, very little is new about the way debit transactions are handled. However, smart chip technology is considered an important step forward in the fight against identity thieves, since [...]
[...] the transaction, very little is different about the way debit transactions are handled. However, smart chip technology is considered important to identity protection, since use of debit cards in identity [...]
[...] the transaction, very little is different about the way debit transactions are handled. However, more secure debit card technology is considered important to identity protection, since debit fraud has been on the rise [...]
[...] the transaction, very little is changed about the way debit transactions are handled. However, smart chip technology is considered important to identity protection, since identity theft has been on the [...]
[...] the transaction, very little is changed about the way debit transactions are handled. However, more secure debit card technology is considered vital to protection against identity fraud, since use of debit cards in [...]
[...] the transaction, very little is changed about the way debit transactions are handled. However, chip and PIN debit card technology is considered important to identity protection, since identity fraud has been on the [...]
[...] the transaction, very little is different about the way debit transactions are handled. However, smart chip technology is considered important to identity protection, since identity fraud has been on the [...]
[...] during the transaction, very little is new about the way debit transactions are handled. However, chip and PIN technology is considered important to identity protection, since identity theft has been on the [...]
[...] the transaction, very little is changed about the way debit transactions are handled. However, chip and PIN technology is considered important to identity protection, since identity fraud has been on the [...]
[...] the transaction, very little is different about the way debit transactions are handled. However, smart chip technology is considered important to identity protection, since use of debit cards in identity [...]
[...] the transaction, very little is new about the way debit transactions are handled. However, smart chip technology is considered vital to protection against identity fraud, since identity theft has been [...]
[...] the transaction, very little is new about the way debit transactions are handled. However, chip and PIN debit card technology is considered important to identity protection, since debit fraud has been on the rise [...]
[...] the transaction, very little is different about the way debit transactions are handled. However, smart debit card technology is considered vital to protection against identity fraud, since debit fraud has been on [...]
[...] the transaction, very little is different about the way debit transactions are handled. However, smart debit card technology is considered important to identity protection, since the purchase of goods made with [...]
[...] the transaction, very little is changed about the way debit transactions are handled. However, smart debit card technology is considered an important step forward in the fight against identity thieves, since [...]
[...] the transaction, very little is different about the way debit transactions are handled. However, chip and PIN debit card technology is considered an important step forward in the fight against identity thieves, since [...]
[...] the transaction, very little is different about the way debit transactions are handled. However, smart debit card technology is considered important to identity protection, since debit fraud has been on the rise [...]
[...] the transaction, very little is changed about the way debit transactions are handled. However, smart debit card technology is considered an important step forward in the fight against identity thieves, since [...]
[...] restaurants to complete transactions. For some, this sort of convenience is likely to beat out the chip and PIN set up that is being pushed for security here in [...]