Chips With Everything!

Thursday 16 October 2003 16:33 CET | News

Alliance & Leicester has issued 5,500 new Chip and PIN credit and debit cards as part of the trial of the new technology in Northampton ? and is set to issue new cards to its 3.6 million credit and debit cardholders across the UK.

Chip and PIN is the biggest change to the way Britain shops since decimalisation. By 2005, the vast majority of cardholders will enter a four digit PIN instead of signing to verify a transaction, guarding against fraud and making transactions much more secure. Over the next year-and-a-half 122 million cards, 850,000 point-of-sale terminals and 40,000 cash machines ? including approximately 2,500 Alliance & Leicester machines - will be upgraded or replaced to accommodate the new system. Consumer reaction to the new system has been very favourable during the Northampton trial which began in May. Research by the Association for Payment Clearing Services shows that more than 80 per cent were in favour of the new system, while across the country as a whole 84% of people are quite keen or cant wait to use it. Chip and PIN is crucial in the battle to reduce card fraud. In 2001, £411 million of card fraud was perpetrated, this rose to £424 million in 2002. Since the introduction of similar technology in France nearly 10 years ago, there has been an 80 per cent reduction in fraud.

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Keywords: ,
Categories: Payments & Commerce | Cards
Countries: World
This article is part of category

Payments & Commerce