Internationally, chip technology is being introduced to migrate card payments from magstripe cards to CHIP & PIN. The South African banking industry is following this trend.
CHIP & PIN, also known as chip cards, represent a new generation of cards with a silicon computer microchip embedded in the plastic. CHIP & PIN can store more data and support processing functions that are not possible with magstripe cards. In addition, CHIP & PIN can hold software for multiple payments and rewards programmes, offering merchants and customers a new level of utility and convenience.
For merchants, the benefits of CHIP & PIN include reducing the risk of fraud and chargebacks. Encrypted information on the chip validates the smart card as being genuine in each transaction. Customers are required to enter a PIN and do not have to sign at the point of transaction.
The EMV (Europay, MasterCard and VISA) Forum in South Africa was established to introduce smart card standards in South Africa. The forum comprises the four major banks, Nedbank, ABSA, Standard Bank and First National Bank, as well as other financial institutions, working together to implement chip technology in the card payment systems.
Nedbank Ltd Reg No 1951/000009/06. We subscribe to the Code of Banking Practice of The Banking Association South Africa and, for unresolved disputes, support resolution through the Ombudsman for Banking Services. We are an authorised financial services provider. We are a registered credit provider in terms of the National Credit Act (NCR Reg No NCRCP16).
