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What You Need to Know About the NEW PIN & PAY Acceptance

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An industry PIN & PAY website (www.pinandpay.com.my) was established in November 2015 to provide cardholders and retailers with all the information required to understand the change from signature to PIN.

Cardholder

With the industry-wide initiative to replace signature cards with PIN cards, all signature cards will be phased out and all POS terminals upgraded to support the shift to PIN by 1 January 2017. From 1 July 2017, signature will no longer be accepted when you use your card to make a domestic payment.

Some Frequently Asked Questions for your quick reference.

What is PIN?

A PIN, or Personal Identification Number, is a secret code that is either assigned to, or selected by customers to prove that they are the rightful owner of the payment card. PINs for Malaysian cards have six digits.

Why is PIN safer than signing?

PIN usage can help protect against fraud due to lost or stolen cards, because the card and the PIN are required to make a payment. This is why customers must always keep their PIN secret.

What happens if I forget my PIN?

Before 1 July 2017, signature will still be allowed when using your new PIN card if you cannot remember your PIN while transacting at an attended terminal. The retailer can assist you to complete your transaction using signature. After 1 July 2017, you will not be allowed to use your card at a point of sale terminal in Malaysia if you do not know your PIN. As a security measure, you must enter your PIN at automated fuel dispensers and other unattended terminals if you are prompted for PIN, even prior to 1 July 2017. If you forget your PIN, you will not be able to use your card at these unattended terminals. If you do forget your PIN, contact your card issuer to receive or select a new PIN.

Can I still use my PIN card for contactless?

Yes. If your contactless card has a PIN, the terminal will prompt for PIN after your card is tapped on the contactless reader for transaction amounts above a certain limit. However, low-value contactless transactions do not require PIN or signature.

Do I need to enter a PIN whenever I use my card in Malaysia?

No, not all transactions at point of sale will need PIN:

  • Low-value contactless transactions do not require PIN.
  • Transactions performed at a terminal not yet supporting PIN will still use signature.

For full list of FAQ’s, visit https://pinandpay.com.my/en/cardholder.html.

For more information, you can also download the cardholder video guide.

Retailer

With the industry-wide initiative for all signature cards to be replaced with PIN cards, all POS terminals accepting payment card transactions have to be upgraded to support the entry of PIN by 1 January 2017. From 1 July 2017, signature will no longer be accepted on Malaysian payment cards for domestic transactions.

Benefits of Chip & PIN System to Merchants

(Based on experience of merchants from other countries)

Faster throughput at the point-of-sale

  • PIN is faster than pen and paper
  • Reduces cashier involvement in payment process
  • Free up cashier’s time for other customer service activities
  • Customer handles the card and PIN entry via the PIN pad

Customers prefer PIN

In New Zealand, 70% if the credit cardholders used PIN instead of signing even though PIN bypass was allowed and PIN was not promoted.

Reduce costs for printing, storing and retrieving paper receipts.

Some Frequently Asked Questions for your quick reference.

Do I need to change my POS terminal?

Yes. Your point of sale terminal software needs to be updated to enable prompting for PIN. This terminal software update will need to be completed before 1 January 2017.

What happens if my terminal software has not been updated yet and customers come with a PIN card?

It will process new PIN cards without prompting for PIN just like it does for existing signature cards, and the customer’s signature will need to be verified.

Do all transactions at my POS terminal need PIN?

No, not all transactions at point of sale will need PIN:

  • Low-value contactless transactions for amounts below a certain limit do not require PIN.
  • International transactions (with cards issued by banks outside Malaysia) may be approved with signature and not require a PIN.

If I run a café, bar or restaurant business, what does this mean for me?

PIN transactions require customers to complete their payment where the terminal is physically located. For convenience, you may want to upgrade from a fixed-line terminal to a portable terminal.

For full list of FAQ’s, visit https://pinandpay.com.my/en/retailer.html.

For more information, you can also download the merchant video guides :

Retailer Guide 1 - About PIN

Retailer Guide 2.1 - Payment with your new PIN terminal

Retailer Guide 2.2 - When your customer needs help

Retailer Guide 2.3 - Helping customers with contactless transactions

Retailer Guide 2.4 - Helping customers to add a tip or gratuity