Chip and Pin cards winning acceptance

BRITISH banks are set to claim victory in their battle to get the general public used to new chip and Pin cards after a survey revealed widespread satisfaction with them.

The new chip and Pin bank cards are aimed at tackling the cost of card fraud in the UK. Some £424m of fraud was committed on UK cards in 2002. Banks believe that without the new technology losses to fraud could have reached £800m this year.

But despite the banks' view, almost one-third of users question whether it will crack the fraud problem for good. New research out today shows that some 65% of UK consumers have now used the new cards and 83% who have done so described the experience as 'positive'. But nearly a quarter said they struggled to remember their personal identification number.

And although 84% of people said they understood why the new technology was introduced, only 69% said they believed it would work in the fight against card crime.

Carl Clump, chief executive of Retail Decisions, which specialises in card fraud prevention and payment processing, admitted that chip and Pin was just part of the overall anti-fraud picture. He warned that it was still important to monitor internet, mail order and telephone card transactions.

Clump added: 'In the long-term, fraudsters will find a way around the system as fraud is an ever-changing threat.'

Chip and Pin cards came into force on 1 January and require shoppers to type in their personal number rather than just writing their signature. According to Retail Decisions only 34% of users had had all their cards replaced with chip and Pin.

Initial fears that retailers would refuse to accept non-chip and Pin cards from shoppers have proved misguided. Some visually-impaired customers have told This is Money of problems they've experienced in getting chip and signature cards. But, for the most part, the banks say the experience for disabled customers has been positive.