DataCash Moves into The High Street

Tuesday 2 December 2003 23:01 CET | News

DataCash, the UK’s largest bank-independent processor of cardholder not present transactions, has extended the functionality of its outsourced payment gateway to support new Chip and PIN cardholder present transaction standards.

The Chip and PIN initiative, introduced by the banking industry earlier this year, requires card users to enter a four-digit Personal Identification Number (PIN) instead of signing a paper receipt at the checkout. Figures released by APACS (Association of Payment and Clearing Services) show that card fraud losses are growing at about 30 per cent per annum, a cost of £411 million in 2001. Forecasts show UK losses would be in the region of £800 million by 2005. It is expected that chip and PIN will reduce credit card fraud by half. To combat card fraud, two facts need to be established at the time of the transaction: that the card is the genuine item and the person using it is the true owner. To achieve the first of these, UK banks are already issuing chip cards that hold the card data so securely that they cannot feasibly be copied or altered, unlike a magnetic stripe. To achieve the second, by 1st January 2005 all terminals in the UK need to be Chip and PIN compliant allowing a cardholder present transaction to be completed by the customer keying in a Personal Identification Number (PIN). DataCash has extended its functionality to support both standalone terminals and terminals integrated into POS systems.

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Categories: Payments & Commerce | Payments General
Countries: World
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