1. Chip and Signature Awareness Raising
The vast majority of card transactions in the UK are authorised by chip and PIN. However, chip and signature is still a valid approval method. Some UK residents have problems using chip and PIN, mainly due to disability, so their bank issues them with a chip and signature card.
If the customer is disabled you have a legal obligation to cater for them under the Equality Act (2010) so it is important you and your staff know how to deal correctly with chip and signature cards. Overseas visitors may also need to sign to pay as chip and PIN is not used in all countries.
The Payment Council found that 1/4 of people who use a chip and signature card felt anxious when using the card, often resulting from the fact that staff were not familiar with the authorisation process. As a result there is an initiative to raise awareness and the Payment Council have produced materials with clear instructions on how to approve card transactions by signature. If you follow the instructions you are legally protected against card fraud to the same level as for chip and PIN.
- Dip the chip in the card reader then follow the prompts (or swipe if its a non chip card)
- If a signature is requested pass the receipt for the customer to sign
- Check the card and the signature to make sure they are genuine
- Return the card and their copy of the receipt to the customer
For more detailed instructions see this guide or the video below
2. Mobile Payments Project
Mobile payments are payments made using your mobile phone. There are different types of mobile payment for instance in the US there are several apps which allow customers to pay with their mobile phone. In spring 2014 the Payment Council is launching their own mobile payments service. Eight financial institutions representing 90% of UK current accounts are on board with the scheme which will allow payments to be made by simply entering the payees phone number.
Before the launch, participating financial institutions will invite customers to link their bank account to a phone number. Customers will then be able to send and receive payments on their phone as easily as sending a text message. Authorisation will require a password and payments to both individuals and businesses will be possible.
3. Account Switching Service
In September 2013 the Payments Council is to launch an account switching service for individuals, small businesses and charities. The service is to make it quicker and easier to switch bank accounts and is backed by guarantee.
- Deal only with new bank to switch
- Customer chooses switching date
- Switching time reduced to 7 days
- Free and backed by guarantee
- Redirection service for 13 months
I hope you found this post useful. For further details about any of these projects please visit the Payments Council website.