The benefits and advantages of the introduction of Chip and PIN cards are multifold. As compared to traditional swipe and signature system, the new Chip and PIN payment method is more secure and offers a safer way to carry out transaction using electronic means.
The enhanced security and reduction of chances of fraud have started making the consumers accept it as the new means of transactions. The traditional swipe and signature is still in use for some period of time so as to make the changeover smooth and in the meantime the users can get used to the Chip and PIN system. Not just the consumers, the replacement of machines for the new system will also take some time and the nationwide and regional changeover can not be done in an instance. The parallel run of both the systems is planned to make the users aware of the Chip and PIN system before completely switching to the new system of payments.
The costs incurred in the implementation of the new system are incurred at various levels both within and outside the organization. The overall costs of changeover to the new system includes the costs of replacing the old card machines (designed for swipe and signature system) with the new Chip and PIN compatible machines at Point of Sale (POS) Terminals as well as cash machines, upgrading the backend system to handle the Chip and PIN system, securing the card centers to handle for the payments and training the staff for the new implementation and operations. The cost of issuance of new cards to the existing card holders also adds a good percentage to overall costs.
The potential benefits the system is expected to offer are way mor ...