News
Visa lauds CBB 'Chip and Pin' move
Visa has welcomed the announcement by the Central Bank of Bahrain (CBB) in connection with the implementation of 'Chip and Pin' technology for all new credit and debit cards to be issued from this month onwards.
The chip-based cards have many advantages including increased security, additional features and greater convenience, said a senior Visa official.
"Acceptance of 'Chip and Pin' cards is a priority for both banks and merchants to keep in line with international developments in the payment industry as well as providing cardholders with the most secure payment product available," observed Majeed Hujair, general manager, Kuwait and Bahrain, Visa.
"Visa provides payment solutions and infrastructure which create an environment that is easier and safer to transact with cards than with cash and has been working with Visa card issuers across the region to ensure the implementation of Chip and Pin EMV compliant facilities, he added.
According to Hujair, the chip cards are virtually impossible to counterfeit as its powerful cryptography prevents unauthorised access to information stored on the microchip, making electronic payments safer than ever before.
In some markets, the power of the chip is enabling cardholder’s identities to be confirmed by personal identification number (PIN) rather than signature when they make a purchase, increasing the security of card transactions even further, he pointed out.
"A single smart card has the potential to perform a variety of functions. As well as payments, your card’s chip could be programmed to incorporate extra features and services from other organisations, such as a loyalty scheme, transport ticketing or identity documentation," he commented.
The biggest advantage is its memory capacity, which means that chip cards can be used safely in remote locations where telecommunications are unreliable or prohibitively expensive.
"Chip cards contain a number of checks and balances that are set up by your issuing bank. Information stored on the chip can be read by a terminal, which means the most efficient authorisation method is used and you cannot overspend," Hujair added.-TradeArabia News Service