Transcript
questions and answers
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Questions and
answers
What is a ‘chip’ card?
Do customers have to use a PIN with a ‘chip’ card?
A ‘chip’ is a security microchip embedded in either a debit or credit card. The chip securely stores the data previously held on the magnetic stripe on the back of the card.
No. A customer’s signature will continue to be accepted at all Australian merchants and most merchants overseas. Note, that some countries (particularly in the United Kingdom and Europe) may insist on the use of a PIN for some purchases.
Now the global standard for debit and credit card security, security chips make it harder for criminals to fraudulently access card information and to make counterfeit copies of your card.
Why does chip technology provide more security? ‘Chipped’ cards are a more effective counter-measure against counterfeit and skimming fraud. The microchip stores card information more securely than a magnetic stripe, making it harder to fraudulently copy card details during a transaction.
Are ‘chip’ cards used any differently? There is only one small difference when using a ‘chip’ card. Once an eftpos machine has been upgraded to process ‘chip’ card transactions, ‘chip’ cards must be inserted into the terminal, rather than ‘swiped’.
Are ‘chip’ cards used the same way in all eftpos machines? No, not necessarily. Depending on your eftpos machine, you may need to insert your card at the bottom face up or at the bottom face down. And Eftpos machines from other suppliers may have different instructions.
What will happen if I accidently swipe a customer’s ‘chip’ card? This is not a problem. If you swipe a ‘chip’ card by accident into a ‘chip compatible’ eftpos machine, the machine will display a message asking you to insert your card into the card reader instead.
How do chip cards differ from cards with a magnetic stripe? A traditional magnetic stripe on the back of a card transmits simple numeric information to your terminal when the card is swiped. The terminal then relays this information to a financial institution for authorisation and the cardholder signs a receipt after approval. Chip cards are inserted into your terminal and remain there while the transaction is processed. Located above the card number on the front of customers’ cards, chips securely store card data making it harder for criminals to fraudulently copy customers’ cards.
Will I be receiving a new terminal? No, you won’t need a new terminal. In the coming months Bendigo Bank will remotely upgrade your EFTPOS terminal with the required chip technology software. Once upgraded, your terminal will be able to process transactions from chip cards.
When will my terminal be upgraded? You will receive further information by mail regarding your terminal software upgrade in the coming weeks. The upgrade will take place automatically, overnight at off-peak times to ensure we limit any disruption to your business. All you will need to do is to continue to leave your terminal switched ON overnight – and we’ll do the rest.
questions and answers
Questions and
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How will I know that the upgrade has been successfully completed? You’ll know your upgrade has been completed successfully when your terminal will ask you to insert a chip card when you swipe the card’s magnetic stripe.
Can I continue to accept payments from both chip and magnetic stripe cards once my terminal is upgraded? Yes. Because chip cards will not completely replace magnetic stripe cards overnight, you will be able to accept payments using both types of cards. Bendigo Bank will upgrade your terminal software to accommodate both card types. You will swipe standard cards using the magnetic stripe. Chip cards must be inserted at the bottom, front-end of your terminal.
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How will I know if a chip transaction has been processed successfully? Your terminal will continue to provide these messages exactly as it does now. Authorisation will also be a similar process and the card can be removed at the end of a transaction.
Are there special procedures if my terminal fails to read a chip? If your terminal fails to read a chip after the introduction of new chip technology, you can revert to using the magnetic stripe and a PIN or signature.
How will new chip technology impact mail order, telephone order and online transactions? These types of transactions are not impacted by new chip technology.
Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879 (S27849-3) (08/10)
