What is the new Chip and Pin system?

The new Chip and PIN initiative is a system being introduced in the UK in 2004 to reduce counterfeit and stolen card fraud.

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What is Credit?: Credit is an extremely useful way of paying for goods or services at a later time, usually paying interest as well as the original money. Offering real convenience, you can choose how to pay back credit in the way that best suits you.
Why do I need Credit?: There are a number of benefits associated with paying by credit as opposed to cash or cheques:
What happens when I apply online?: Many online applications will result in a provisional decision within 20 seconds.
What APR (Annual Percentage Rate) will I receive?: APR is the Interest Rate charged to your account on any balances not paid off by the date shown on your statement each month - meaning that if you pay your balance off in full every month you will never need to pay interest on your purchases.
Can I use my card abroad?: Using a credit card abroad is an easy way to make purchases of any kind as it saves you from carrying large amounts of cash around.

Chip and PIN will change the way that you authorise your card payments, replacing the current system of a signature on the receipt with a four-digit PIN that you will type into a special key pad at the till. Because your PIN will only be known to you - your card will be useless if it is copied, lost or stolen, removing the risk of signature forgery.

If you type in the wrong PIN three times consecutively, your PIN will be locked – but the retailer will not take your card away from you. You will be able to unlock the card at a cash machine after contacting your card issuer. If your card has been reported as lost or stolen however, the retailer will keep the credit card.