Chip & PIN ramps up fear factor

Almost one-in-four consumers now feel more exposed and vulnerable when making a purchase following the introduction of PINs in place of signatures at the point-of-sale in the UK, according to research from polling organisation Ipso Mori.

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Chip & PIN ramps up fear factor

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The research among more than 2000 UK consumers was conducted on behalf of IT services group Xansa. The study found that one in four (23%) of female card holders and one in ten (11%) of male shoppers feels less secure using the new payment method.

Despite a fall in the amount of cardholder present fraud, the safety improvements are not clear to some of the shopping community (17%) who now feel more vulnerable when making a purchase, because of entering a PIN number rather than signing.

From 14 February, cards will only be accepted at retailer tills when accompanied by a PIN number. Xansa is recommending credit card providers appeal directly to female cardholders, to allay their fears, as well as to encourage them to use the mechanism for in-store payments.

James Doyle, director of financial services, Xansa, comments: "Any obstacles in the way of shoppers making purchases must be removed by both retailers and card providers. The finance houses invest heavily to promote the new payment method, but 23 percent of female cardholders are not buying the message that Chip & Pin is better."

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