The card industry is phasing out the use of signature for Point of Sale (POS) transactions for all debit and credit cards issued in Australia. This initiative called PINWise is being introduced to help reduce the risk of card fraud.
From 1 August 2014, PIN will become the main form of card payment authorisation in Australia when you process credit and debit card transactions through your EFTPOS terminal.
The industry wide move to expand PIN at POS and phase-out the signature as form of verification on Australian credit and debit cards will take place over a short transition period from 1 August 2014, as POS terminals migrate and take on these new changes.
In the lead up to 1 August 2014, you should encourage customers to use PIN instead of signing. Any cardholders without a PIN will need to contact their bank.