KUALA LUMPUR (Dec 13): It is learnt that many retailers have been automatically bypassing personal identification number (PIN) when presented with a new PIN-enabled card to possibly avoid having to present the PIN pad to customers.
The Association of Banks in Malaysia and Association of Islamic Banking Institutions Malaysia said in a joint statement today the rollout of 'PIN & Pay' in Malaysia has reached critical mass in terms of the number of PIN-enabled cards distributed to cardholders and the number of terminals at retailers upgraded for PIN.
They said retailers with PIN-enabled terminals should always offer their customers the opportunity to securely key in their six-digit PIN if the customers are using PIN-enabled cards and the terminal prompts for PIN entry.
Retailers who have PIN-enabled terminals are also urged to display the PIN & Pay logo at their shops and payment counters, they said in the statement.
Meanwhile, they urged retailers and cardholders to switch to PIN-enabled cards soon because card payments without PIN would not be allowed in Malaysia.
They reiterated the usage of PIN as being more secure, convenient and faster compared to using a signature-enabled payment system.
Bank Negara Malaysia announced earlier this year that signature-based credit cards would be phased out beginning January 2017, and the service would be turned off on July 1, 2017.
The associations said PIN & Pay is now available at many of the retailers where cardholders shop most frequently such as, but not limited to, supermarket, hypermarkets, departmental stores and pharmacies.
"The associations, in collaboration with Mastercard and Visa, are actively promoting the usage of PIN across the country," the statement by the associations stated, adding that those who have not received the cards should contact their issuers.
PIN-enabled cardholders should activate the card and select a PIN straight away, and insist on entering PIN at retailers where the PIN & Pay logo is displayed or where the retailer has a PIN-enabled terminal.