Chip and PIN Security For Your Credit Card

Credit cards just keep getting smarter. In an effort to reduce credit card fraud, the latest family of credit card offerings are implanted with 'smart chips' that interact with special terminals to identify you and secure your purchases.

Chip and PIN is a secure card payment method that's being introduced across the UK in shops, banks and other points of sale. Currently, when you use your credit card in a shop, the shop girl only has your signature to go on as a means of security. Few of them even ask to see identification to prove that you are who you say you are.

Chip and PIN security will encode a Personal Identification Number into your credit card. When you use your credit card at a shop or the bank, you'll swipe your card, and be prompted to enter your PIN number, which is encoded in the chip that's embedded in the plastic credit card. The Chip and PIN adds an extra layer of security to your purchases.

The built-in microchip technology is meant to reduce card fraud and all the inconvenience that goes along with it. The microchip protects the data on your card from being copied or altered in any way without the PIN being entered. Just like your debit card, no one will be able to use your credit card unless they know the PIN number. As long as you keep your PIN a secret, you'll reduce your chances of having your credit card stolen and used to just about nil.

Chip and PIN is available on Abbey Credit Cards, who are taking their cue from a similar system that was introduced in France a few years ago. The French system has reduced credit card fraud by nearly 80%. Here in the UK where credit card fraud costs more than 1 million pounds a day, that level of protection can save millions of pounds a year.

More importantly, it can save you from the irritation and inconvenience of having to cancel all your credit cards if your wallet is stolen.

When your new credit card arrives, your PIN will arrive in a separate mail. To preserve the security, it's suggested that you never keep your PIN number and credit card together. In fact, you should memorize your PIN number and destroy the mail. While you can change your PIN number to one that is easier to remember, you should take care to choose a number that will be difficult to guess.

Chip and PIN should be available throughout the UK by the end of this year, but until then, you may still need to use your signature in some circumstances. Specifically, you may need to sign for your purchases in shops that haven't yet upgraded to terminals that accept Chip and PIN or SmartCards. If the shop doesn't have a Chip and PIN terminal, you'll follow the same process as you do now. The card will be swiped and you'll be asked to sign a receipt.

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