The chip and PIN programme was launched last year to tackle the growing problem of credit and debit card fraud. Part of the problem is that it is easy to fake a signature when signing a receipt. The new PIN system, already used in many other countries, will also come with smart chips embedded in cards, which will store information more securely than magnetic strips. The UK is one of the first countries to introduce chips on cards.
The UK programme began with a successful public trial in Northampton and is now being rolled out nationally, with more than 850,000 retailer terminals, 122 million cards and 40,000 cash machines due to be upgraded by 2005. According to industry group Chip and PIN, a similar PIN-based system in France saw an 80% reduction in fraud since its introduction 10 years ago.
The group issued their first chip and PIN 'barometer' yesterday, showing that eight million people have now received the new chip and PIN cards. This amounts to one in six of all UK cardholders – slightly lower than the one in five that the industry predicted would hold the cards by Christmas.
The report indicates that some 100,000 businesses that accept credit or debit cards now accommodate chip and PIN. The supermarket chain Safeway, for example, has completed its rollout, and is now processing around 100,000 chip and PIN transactions per week.
Sandra Quinn, chip and PIN spokesperson, said:
"We are pleased with the first weeks of the chip and PIN rollout. Cardholders and retailers across the UK are starting to benefit from this new fraud-busting technology. Cardholders don't need to do anything until they receive their new card. They should look out for literature from their banks as it could be their new chip and PIN card."