PINWise: PIN at point of sale from 1 August 2014
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.
When will the changes come into effect on my CommBank EFTPOS terminal?
Changes will be progressively rolled out to CommBank POS terminals to prompt for PIN instead of signature from 1 August and will be completed by 20 October 2014.
During this period, some merchants may not have all their terminals changed at the same time. If the changes haven’t been received by your POS terminal, transactions authorised using a signature will still be approved.
If you currently have a fixed line terminal, Pay-at-Table tipping will require you to have the customer complete the payment where your EFTPOS terminal is physically located. For more convenience, you may want to upgrade to one of our Mobile or Bluetooth portable terminals which will give you the ability to take the terminal to the customer (at their table).
- What about International Cards?
- Why the change?
- When will the changes come into effect?
- What cards will be impacted?
- What do I need to do?
- Will Mail Order or Telephone Order (MOTO) transactions be impacted?
- What do cardholders need to do?
- What happens if a cardholder does not have a PIN?
- What if our terminal doesn’t accept chip cards?
- Why won’t deferred tipping work once a PIN is required for all POS terminals?
- Advantages of pay-at-table tipping for you and your customers:
- I want to keep deferred tipping and am thinking of moving to another bank so I can have it on my POS terminal?
- I operate a bar, with the changes what is the best way to manage bar tabs?
- Where can I find out more information?
The changes are going to be progressively rolled out to CommBank POS terminals from 1 August and will be completed by the 20 October 2014. During this period, if the changes haven’t been received by your POS terminal, transactions authorised using a signature will still be approved.
From 20 October 2014, card transactions performed at a POS terminal will be declined by the cardholder’s bank when a PIN is not used for authorisation.
Always ask your customers if they would like to PIN.
If you have a CommBank terminal, you don’t need to do anything. We will apply the necessary changes to your terminal automatically.
No, changes relate to transactions where the card and cardholder is present. Telephone or mail order transactions are not impacted as cardholders should not disclose their PIN to anyone.
Cardholders need to ensure that they have a PIN that they can remember. If they don’t have a PIN, or can’t remember it, they need to contact their bank.
If you have a CommBank personal card visit commbank.com.au/pinwise to find out how to set or change your PIN.
If a cardholder does not have a PIN, you will need to advise them to contact their bank. Until the change is in effect on your terminal and prior to October 18th 2014, you will still be able to process the transaction with the cardholder signing.
Deferred tipping or “tipping with signature” won’t work because it uses a signature rather than a PIN as the card authorisation method. The transaction will therefore be declined. From August 2014, the customer will always need to be able to enter their PIN directly into the EFTPOS terminal at the time the transaction is processed.
The advantage of pay-at-table tipping (“tipping with PIN”) is that only one transaction is required on the EFTPOS terminal, saving you time. Merchants also have the choice to take the terminal to their customer (at their table) or to ask their customers to pay at a counter.
The advantage for cardholders is that the tip is processed at the same time as the bill, so they know exactly how much they’ve been charged. They’ll see the total of the bill and tip as just one transaction in their bank account.
Best practise for the bar and hospitality industry is to seek payment from the cardholder via contactless methods. This discreet method of payment is easy, quick and will ensure that drinks are paid for as served, ensuring no surprises at the end of the night.
As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances. Please view our Merchant Agreement, Financial Services Guide and Operator and User Guides at our Merchant Support Centre.