Malaysian banks and merchants may finally shift to a more secure way of authorising credit or debit card transactions in which card holders will be required to enter a personal identification number (PIN) at checkout instead of signing receipts.
Sceptical about this system? Don’t worry, it’s not that new! In fact, we are one of the latest market in the world still using the signature system, which is part of the reason why a massive amount of card fraudulent cases happen here so often. Here’s what you need to know about the new update:
1. Upgraded POS Terminals set to complete by 31st Dec 2016
As of 31 Dec, all point-of-sale (POS) terminals in this country will be fully upgraded and converted to accept PIN-based cards. Therefore, the central bank urges debit and credit cardholders who haven’t obtained their new PIN-based payment card to contact their respective bank card issuer immediately.
2. Grace period from Jan 2017 – July 2017
For those who haven’t upgraded to PIN-based cards by 1st Jan 2017, you have up ’till July 2017 to do so. A duration of 7 months will be allocated for users to familiarise with the new system, in which all signature-based cards issued by local banks will be phased out after the duration ends. However, they will still accept signature-based cards issued by foreign institutions.
3. Outdoor Payment Terminals
Lazy to queue up at the petrol station counter? Chill, it’s time to do it yourself. The central bank has also allocated newly upgraded outdoor payment terminals (OPT) which accepts PIN-based transactions at selected self-service petrol stations.
4. More POS Terminals!
In an effort to promote cashless transaction, the industry had also invested
RM1.1 billion to support the cashless payment infrastructure expansion for the course of six years, from 2015 until 2020. The number of POS terminals have been increased to 800,000 units (25 POS terminals/1,000 habitats) by 2020, compared to the 275,000 units of POS terminals (9 POS terminals/1,000 habitats) last year.
Finally, they’re making it easier for everyone! Be careful though, DO NOT give out your PIN to anyone cause then, what’s the point of upgrading the whole system?
