Chip and pin bank and credit cards

The way that we pay for things with credit and debit cards is changing. Over the coming months, we are switching to a new system in the UK, called chip and PIN.

What is chip and PIN?
Chip and PIN is a new, more secure way to pay with a credit, debit or charge card. In the future you will simply tap in a four-digit number rather than signing a receipt.

What is chip?
A microchip on your debit or credit card stores your card data more securely than the current magnetic stripe – it is much harder to copy.

What is PIN?
A PIN (Personal Identification Number) is a four-digit number you tap in to verify a payment.

PIN not Pen
The main difference is that when you go to pay for anything with your chip and PIN card - in a shop, supermarket, hotel, restaurant or garage - you will increasingly be asked to enter a four digit number instead of being asked to sign a receipt. This number is a Personal Identification Number, better know as a PIN. It works exactly the same way as when you tap in your number at an ATM or cash machine to withdraw money. You will be getting a new card from the company that issues your card - if you haven't already received it. Typically, this will happen as your current cards reach their expiry date.

What do I do now?
You don't have to do anything now. Your card issuer will be in touch when they are ready to issue a new chip and PIN card to you.

What to do when your card arrives

Dispose of your old card securely When you receive your new chip and PIN card you should cut up and dispose of your old card securely as you do now. However you should only do this once your existing card has expired and your new card has become valid.
Sign your chip and PIN card on the back This will still be vital, as the signature will continue to be used for verification in certain situations (e.g. travelling abroad to a country where chip and PIN is not used or where a retailer has not upgraded to chip and PIN or where the card is used as a cheque guarantee card).
How will I know what my PIN is? In the same way as today, your card issuer may mail you the PIN for your payment card(s). Where you already have a PIN for your card, your card issuer may send you a re-advice note. It will be important to remember the PIN for each of your debit AND credit cards.
Can I choose a new PIN? You will be able to keep the same PIN as you have now or change your PIN to a new four digit number at most UK cash machines.

Using chip and PIN cards

Paying with your chip and PIN card will be just like it is today. Except that where you are asked to provide your signature, you will now be asked to enter your PIN via a PIN pad instead. In some retail outlets you may be asked to insert the card into the card reader yourself.

PLEASE NOTE: Your PIN will never be needed for mail order, telephone, or internet purchases and you should never reveal your PIN in any circumstances.

Paying with your card
Using your PIN to pay will be quick and easy.

Checkout tills in shops will automatically recognise a chip and PIN card when you go to pay with one. It will then ask you to use your PIN rather than sign to authorise your purchase. Here's a step-by-step guide to a typical transaction:

When you go to pay, checkout staff will put your card into a card reader or will ask you to do so.
If you have a chip and PIN card the card reader will recognise it and ask for a PIN to verify your purchase.
There will be a pad on the counter (like at an ATM) into which you enter your four-digit PIN. All you have to do is follow the instructions that come up on the screen. In most cases the PIN pad can be picked up or removed from its holder to make it easier for you to enter your PIN more securely/discretely.
Don't enter your PIN until you're asked to. You will see this message: “Amount £xxx.xx; Enter PIN”.
When you enter your PIN you are agreeing to pay the amount shown just like you do when you give a signature.
When you have entered the PIN press the 'ENTER' (green) button.
The PIN itself is never displayed for security reasons. You will see asterisks instead (****).

If you forget your PIN when you get to the till
Provided you have not locked your PIN by entering it incorrectly three times, you should tell the cashier, who will advise you what alternatives are available. If no alternatives are available you will have to use a different card or an alternative payment method.

Adding a tip
The terminal will display the amount and may ask if you wish to add a gratuity. Follow the display prompts. When you have added an amount, the total amount of the transaction will be displayed and you will be prompted to enter your PIN. By doing so, you are accepting the total amount of the transaction.

At a hotel reception
In hotels, you will normally be asked to enter your PIN when you check in - you will see an estimated amount for the bill. If the amount is significantly different when you check out, then you will probably be asked for your PIN again.

Getting a refund
For refunds, some shops will ask you for your PIN but not always - it depends on how each shop's system works.

Keeping your PIN secure
A very small number of customers are concerned about being overlooked when entering their PIN. PIN pads have been designed and positioned in shops to minimise this risk - for example some have shields around them which make it almost impossible for others to overlook. However you should take care when entering your PIN just as you do now at cash machines.

Try to shield it from view using your body or hand whenever possible and do not enter your PIN if you feel that you are being observed. And don't forget CCTV cameras looking over your shoulder - not all employees are honest. Most PIN pads are able to be picked up or removed from their holders to help PIN entry to be more secure.

You should never let anyone else know your PIN number, including your bank, either in person or over the telephone or web.

Top Tips

Always memorise your PIN and destroy the notification as soon as you receive it.
If the PIN you are provided with is difficult to remember, change it to something more memorable - but avoid obvious things like your birthday or house number
Never write down or record your PIN or other security information
Always take reasonable steps to keep your card safe and your PIN secret
Your bank or the police will never ask you to disclose your PIN

Remembering your PIN
If you find remembering a four-digit PIN difficult then break it down into two lots of two numbers that mean something to you - such as the birth date of one of your children plus an old house number.

Some people find that remembering the pattern of the numbers as they enter it helps them to remember their numbers.

Don't use numbers that can easily be associated with you like part of your telephone number, your year of birth or your street number.

You should also avoid popular number sequences like 9876 or 1234 or 9999.

Best of all is a random combination of numbers - this is the hardest for a criminal to guess.

Changing your PIN

Your initial PIN will be sent to you by your card issuer and it could be the same PIN as you have now. If you want to change the number, you can by going to your card issuer's cash machine or calling their customer service centre. Contact your card issuer for more details.

If you forget your PIN completely, contact your card issuer and they can re-advise you.

If you believe that you will be unable to use a PIN, again, please contact your card issuer who will be able to help you.

Unlocking your PIN
Should you fail to remember your PIN after three attempts your card will be temporarily locked. If this happens you should contact your card issuer, who will give you instructions on how to unlock it.

Using your card abroad
You will continue to be able to use cards overseas. UK chip and PIN cards that carry the international card scheme logos will be accepted by overseas retailers and cash machines just as before. Where the country you are visiting has already upgraded to chip and PIN you will be asked to enter your PIN in the same way as you will in the UK. Where the country in question has not upgraded you will be asked to provide your signature instead. In France, although French customers use PIN already, UK cardholders will continue to use signature for some time.

What PIN terminals are like
You are likely to come into contact with a variety of PIN terminals in different types of shops. Some will have a separate PIN pad that is attached to the till via a wire. Most of these are designed to be picked up, to make it easier and more secure for you to enter your PIN. Some may combine the card reader with the PIN pad in one unit. Others may have the PIN pad built into the shop counter.

The terminals used in restaurants may be wireless so that you can pay whilst sitting at the table without letting your card go out of sight.

All PIN terminals will have the same layout of keys and you will be required to enter the same PIN regardless of the design.

I am disabled; will chip and PIN affect me?
Overall, chip and PIN will allow more disabled people to use cards than before. Of course, it will not suit everyone. Disabled cardholders should discuss their options with their card companies, including cards with signatures, just as they do now.