Forgotten PINs! Retailers beware

Chip and PIN has officially been with us for over three months. While not all shops and businesses that accept credit and debit cards have updated their technology to accept Chip and PIN, most have. The costs associated with making the transition are often cited as an important factor for those that have not.

If your business has introduced Chip and PIN technology, you should expect card companies to automatically decline payments if a PIN is not used with a Chip and PIN card.

If you decide to override this decision and accept a transaction, for example with a signature instead, beware! You may be liable for any fraud or other chargebacks that result. Your bank will be able to let you know where the exact liability lies.

There are a few exceptions for individuals who do not have to use Chip and PIN, including overseas cardholders, the visually impaired or people who may have trouble entering or remembering a PIN. The latter category can apply for a special chip and signature card.