Scotiabank is to launch Canada's first trial of chip and pin technology at the retail point of sale.
Consumer participants in the Ontario pilot will receive a smart Visa card, which they can use at chip-enabled, point-of-sale terminals as well as the common magnetic swipe that most merchants in the Barrie area accept. When conducting credit transactions with their new chip card at participating merchants, customers will be prompted to enter a PIN, instead of signing a receipt.
In June, Visa announced plans for a seven-year migration to EMV chip technology in Canada. The card organisation pointed to a January 2003 survey in which 61% of Canadians said they would prefer entering a PIN at the point of sale.
Alberta Cefis, EVP, retail lending services, Scotiabank, says: "Chip technology is the future of payment transactions, (it) offers greater convenience and security while providing a variety of payment options on one card."
Paymentech Canada will participate in the pilot by deploying chip terminal readers at Barrie area merchants.
David Stafford, vice president in charge of credit cards at Scotiabank says that in subsequent phases the bank plans to use technology developed by Cardis Enterprises International to test the use of chip cards for small dollar purchases. Additional information on these features will be provided to cardholders and merchants as they are introduced, he says.