Brits happy with chip and pin

Thursday, 19 January 2006 12:00

With less than a month to go until Britons are required to use pin numbers rather than sign for goods, the vast majority of UK residents are comfortable with chip and pin.

Currently 86 per cent of shoppers are comfortable with the new security system, up from 58 per cent last year, figures from Alliance & Leicester reveal.

And the introduction the technology has seen card fraud fall by 33 per cent, with gross losses on counterfeit card fraud reduced by 60 per cent.

"A year on from chip and pin the overwhelming majority of consumers are comfortable with using the system, and recognise the benefits it has brought in terms of fraud reduction," said Simon Ripton, current account manager at Alliance & Leicester.

"But it isn't just the security benefits, 52 per cent also say that chip and pin has speeded up transactions - which has to beneficial to consumers and retailers alike."

From February 14th, Britons will have to tap in their security number rather than sign whenever the technology is available.

More than half of UK residents did express concern that others might read their pin over their shoulder, while one in three say they find it difficult to remember all of their different numbers.

But the proportion of Britons carrying their pin numbers around with them - and so providing a gift for thieves - has fallen.

A year ago 14 per cent of cardholders carried details of their pins on their person, but this figure has since fallen to two per cent.

However, while consumers are increasingly comfortable with the new system, banks and credit card firms are lagging behind.

New data from Retail Decisions shows that over 40 per cent of UK adults have not yet had all their cards upgraded to chip and pin technology.

Additionally, one Briton in eleven has no chip and pin card at all.

"These figures indicate that there is still some way to go in order to ensure that everyone has the necessary replacement cards and pins," said Carl Clump Retail Decisions chief executive.

To find a cheap UK credit card, go to www.myfinances.co.uk/creditcards.htm

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