Smart cards are being introduced to reduce fraud. Customers’ smart cards have the capability of supporting add-on services, such as merchant reward programmes and multiple payment applications.
The CHIP uses encryption technology to authenticate the card and ensure that it is genuine. Before the card is issued, data unique to the card is encrypted in the CHIP and is known only to the card issuing bank. At the time of a transaction the terminal will request this encrypted information from the card (off-line). Once the card has been validated as genuine, the transaction can proceed.
Currently, international smart cards and local pilot production smart cards are in circulation and rollout should increase from the second quarter of 2006. Local banks will phase in the issue of smart cards on renewal or replacement of magstripe cards.
If the customer enters the incorrect PIN once or twice, he or she will be prompted to try again.
If the customer enters his or her PIN incorrectly three times consecutively, even if at separate locations, his or her card application will be blocked. In this situation direct your customer to contact his or her bank and request an alternative method of payment.
Customers should receive information from their bank when they receive their smart cards. For more information customers must contact their bank directly.
Nedbank Limited Reg No 1951/000009/06, VAT Reg No 4320116074, 135 Rivonia Road, Sandown, Sandton, 2196, South Africa. 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).
