Credit Card Holders in Australia Won’t Need to Sign for Purchases by Aug 1

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Credit card skimming would soon become a thing of the past since beginning Aug 1, credit and debit card holders in Australia would no longer need to sign for the purchases of over $100. Instead, they would key in PIN codes in an attempt to significantly cut payment fraud.

It is applicable to all major card issuers, including Visa, MasterCard, American Express and Diners Club International.

The system would use chip card technology to help stamp out card theft and skimming when doing face-to-face transactions in retail outlets. The PIN code would be four digits.

Vipin Malra, the country manager for Visa in Australia, said, quoted by The Sydney Morning Herald, "Chip has already cut counterfeit fraud losses on Australia cards by 44 per cent in the 12 months ending June 2013 and the move to PIN will help close the door on lost and stolen card fraud."

Despite the introduction of new technology such as payment using smartphones, many Australians continue using credit and debit cards for their purchases. In the 2012/13 financial year, Aussies made five billion credit and debit card payments totaling $434 billion, according to the Reserve Bank of Australia.

TYRO Payments CEO Jost Stollman added that as Australia moves closer to being a cashless society, PIN codes will play a greater role in protection against fraud that signatures could not. TYRO is the independent EFTPOS provider.

Australian Retailers Association Executive Director Russell Zimmerman acknowledged that shoppers' habits at point of sale would need some adjustment and consideration, but it helps that Australian retailers are embracing the change.