Visa plans to abandon signature requirements for credit card payments and instead introduce a PIN system to combat security breaches.
Within the next five years all Visa cardholders will have to use the PIN system, and the group is expected to hold talks with financial institutions and merchants to set up deadlines.
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The move is an effort to combat credit card theft. According to the Australian Payments Clearing Association, credit card theft totalled $111.5 million in 2007 – up from $85 million in 2006.
“While there are costs, they are incorporated into business as usual activities for banks. Any cost will be offset by lower fraud costs,” Visa Australia spokesman Andrew Woodward told The Australian.
“Ending the use of signatures is something that has to occur and it needs to happen sooner rather than later.”