What is the new Chip and Pin system?
Hot Topics
- How can I keep my credit card secure?
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Like anything, a credit card can be stolen or used without your knowledge, so follow these simple rules to keep your credit card secure:
- How can I protect myself when buying online?
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As long as you have not been negligent, you're always fully protected against fraudulent charges when using the Internet to make purchases.
- How much will I have to pay each month?
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How much you have to pay back each month depends entirely on how much you owe – however the general rule for most credit card companies is that you either make a minimum payment of 2% of the balance or £5, whichever is the higher figure.
- What is Direct Debit?
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Direct Debit allows your credit card company to take, according to your instructions, a variable amount of money from your bank account each month to pay all or part of your outstanding credit card balance.
- How do I use Credit card cheques?
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When you receive your credit card, you will also receive some credit card cheques in the post.
The new Chip and PIN initiative is a system being introduced in the UK in 2004 to reduce counterfeit and stolen card fraud.
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.
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