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Chip and PIN technology catching on


April 15, 2008
By CNW

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April 15,
2008, Kitchener-Waterloo, Ont. – Adoption of a new payment card
technology that provides enhanced security and convenience to merchants
and consumers is gaining momentum in Kitchener-Waterloo.

April 15,
2008, Kitchener-Waterloo, Ont. – Adoption of a new payment card
technology that provides enhanced security and convenience to merchants
and consumers is gaining momentum in Kitchener-Waterloo.


Members of the payment card industry – Interac Association, MasterCard
Canada Inc., Visa Canada and many of their respective card issuers and
payment processors – today reported positive preliminary results from
an industry trial of chip technology in Kitchener-Waterloo.

"The chip card is the next evolution of credit and debit cards," said
Tracey Black, Program Director, Kitchener-Waterloo Industry Chip Trial.
"Cardholders have been receiving chip cards from their financial
institutions and we are pleased with the feedback from merchants and
consumers as the cards are used more widely."

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Since the payment card industry announced plans in October for a chip
technology trial, some 200,000 people – over one-third of local
residents – have received chip-enabled debit and credit cards and are
incorporating them into their day-to-day consumer activities. Local
merchants have installed over 2,300 chip-enabled point-of-sale
terminals and 65 percent of automated banking machines (ABMs) have been
updated to support chip card technology. All financial institutions in
Kitchener-Waterloo now offer chip-enabled ABMs.

At stores that offer chip and PIN technology, cardholders will notice
two changes when paying for goods or services using a chip card. The
card will be inserted into the device and the chip card will remain in
the terminal for the duration of the transaction. Also, most credit
cardholders will need to enter personal identification numbers (PINs),
just as they do today for debit cards, instead of signing a sales
receipt. As in the past, debit card holders must PIN all transactions.

"Merchants and consumers have much to gain from the migration to chip
technology," added Ms. Black. "Chip cards and chip terminals make a
secure transaction system even more secure."

A chip card is a credit or debit card containing an embedded computer
chip, which gives the card the ability to securely store and process
data. Global standards for EMV chip cards allow the payment card
industry to harmonize technical standards to ensure chip card
technology operates efficiently across all payment brands.

"In Canada, each member of the payment card industry and merchant
community has its own timeline for introducing chip card technology,"
said Ms. Black. "All chip cards will continue to have a magnetic stripe
on the back of cards to ensure acceptance in countries that have not
migrated to chip."

The industry trial is scheduled to run until the end of October 2008. Additional merchants may be added in the coming months.


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