Dubai Forums Dubai Discussions Dubai General Chat

http://www.arabianbusiness.com/545351-u ... rly-report


The UAE Central Bank will ask all banks in the country to introduce Chip and PIN technology for credit cards, it was revealed on Sunday.

Requiring credit card owners to use a PIN code has proven extremely successful in other parts of the world in reducing fraud, the bank said in an e-mailed statement, according to Bloomberg.

However, no timeframe for the implementation of the new technology has been provided.

The decision follows a review of the UAESWITCH cash machine network and comes amid a growing problem with credit card fraud in the country.

The bank said that after the excercise it decided to amend some of its protocols and introduce new ones following the recommendation of consultants brought in to oversee it.

The bank added that it will adopt global payment card industry standards for the network.

Chip and PIN is the name of an initiative backed by the UK government aimed at combating credit/debit card fraud.

Under the Chip and PIN system credit/debit cards containing an embedded microchip are authenticated automatically using a PIN.

So, when a customer wishes to pay for goods using this system, the card is placed into a PIN pad terminal or a modified swipe-card reader, which accesses the chip on the card.

Once the card has been verified as authentic, the customer enters a 4-digit PIN, which is checked against the PIN stored on the card. If the two match, the transaction will be completed.