The Maltese financial services industry, particularly the banking sector, has recently been involved in a significant number of challenging projects with the scope of further accelerating its integration into the European single market. Indeed, one of the key projects encompasses the upgrading of our domestic payments instruments and infrastructure within the parameters set out by the Single Euro Payments Area (SEPA).
On January 28, Bank of Valletta in conjunction with its European counterparts, launched SEPA Credit Transfers. Furthermore, throughout the year, Bank of Valletta started the process of migrating debit and credit cards to chip and PIN EMV certification. EMV is a standard for the inter-operation of chip cards as well as point of sale (POS) terminals and ATMs which accept chip cards. The name EMV derives from the initial letters of Europay, Mastercard and VISA, the three card companies which originally worked towards the development of this standard.
A chip is an electronic device, generally silver or gold in colour and that stores a card holder's information securely. The chip card offers enhanced security benefits that verify the identity of the cardholder. Furthermore, it can incorporate updates and other future value-added services. In contrast to magnetic stripe technology, chip and PIN technology offers:
Quicker checkout times: Particularly at retail outlets. A traditional magnetic stripe and signature transaction usually takes 43 seconds at a high street shop while a chip and PIN one takes only 29 seconds;
Lower fraud rates: According to a recent study conducted by Visa Europe, through the introduction of chip and PIN, merchants and customers have experienced an 81 per cent reduction in fraud in countries where chip and PIN cards are accepted; and
Fewer charge backs: Experience has shown that migration to chip and PIN has also brought about a decrease in the number of charge backs.
Pan European Dimension
Across the European Union, more than 4,500 banks are in the process of upgrading up to a billion debit and credit cards. The SEPA project brings added momentum to the European EMV migration process. Driven by the European Central Bank and the European Payments Council, this initiative is bringing more harmonisation to the European market place. Since EMV provides a consistent card and terminal standard, the chip card is seen as a core component of the SEPA project. Under the terms of the SEPA Cards Framework , the migration process must be completed by the end of 2010. The end of 2010 can, therefore, be looked upon as the "back stop" of the entire European EMV migration programme. Chip and PIN-enabled point of sale terminals are being placed at several million merchants. The European region's ATM network is also being completely upgraded. In most European countries, the majority of cards and/or terminals have already been upgraded.
According to the latest published figures issued by Visa Europe, the chip and PIN roll out project is in a well advanced stage.
• 177 million Visa chip cards had been issued (representing 51 per cent of all Visa cards issued);
• 59 per cent of all cross-border POS Visa spending originated from an EMV compliant POS terminal;
• 40 per cent of all cross-border POS Visa spending involved both an EMV-compliant chip card and an EMV-compliant POS terminal;
• 79 per cent of all cross-border Visa ATM withdrawals originated from an EMV-compliant ATM.
The local perspective
The Malta Bankers' Association is coordinating the communication strategy behind the introduction of chip and PIN in Malta. Currently, the banks are in the process of sending out an information leaflet to all their cardholders informing them about chip and PIN. By the end of 2010, all magnetic stripe cards would have been converted to chip and PIN. These cards could be used anywhere in the SEPA area and beyond. Due to the magnetic stripe, the chip card may be also used in countries where chip technology is not available.
Bank of Valletta began its EMV project in October 2004, when it started replacing its POS equipment with new, EMV enabled machines. The bank has also upgraded all its ATMs and replaced the last POS units. During the next few months, all BoV Cashlink Visa cards will have been migrated to chip and PIN. This will be followed by the platinum and gold Cards. Our classic Visa and MasterCard will migrate to chip and PIN next year.
There are seven steps to the usage of Chip and PIN Cards. Step 1: At payment stage, checkout staff will put your card into the card reader, or ask you to do it. Step 2:I f you have a Chip and PIN card, the card terminal will recognise this and will request a PIN instead of a signature. Step 3:Follow the instructions on the PIN pad.
Check the amount and enter your secret four-digit PIN, followed by the ENTER key when asked to confirm the payment.
Make sure that no one can see your PIN by picking up the PIN pad, where possible, or shielding it with your free hand or your body. Step 4: The PIN itself is never displayed. You will see asterisks (****) instead. Step 5: If you make a mistake, press Clear, Cancel / C, and re-enter your PIN. Step 6: In restaurants and other places where tipping is common place, you may be given the choice of entering a tip or a larger amount before entering your PIN. Step 7: The screen will tell you if the PIN has been accepted and you will be issued a receipt as usual
• Mr Sant is a senior manager on EU and SME and Ms Scerri a senior manager card issuing at Bank of Valletta
On January 28, Bank of Valletta in conjunction with its European counterparts, launched SEPA Credit Transfers. Furthermore, throughout the year, Bank of Valletta started the process of migrating debit and credit cards to chip and PIN EMV certification. EMV is a standard for the inter-operation of chip cards as well as point of sale (POS) terminals and ATMs which accept chip cards. The name EMV derives from the initial letters of Europay, Mastercard and VISA, the three card companies which originally worked towards the development of this standard.
A chip is an electronic device, generally silver or gold in colour and that stores a card holder's information securely. The chip card offers enhanced security benefits that verify the identity of the cardholder. Furthermore, it can incorporate updates and other future value-added services. In contrast to magnetic stripe technology, chip and PIN technology offers:
Quicker checkout times: Particularly at retail outlets. A traditional magnetic stripe and signature transaction usually takes 43 seconds at a high street shop while a chip and PIN one takes only 29 seconds;
Lower fraud rates: According to a recent study conducted by Visa Europe, through the introduction of chip and PIN, merchants and customers have experienced an 81 per cent reduction in fraud in countries where chip and PIN cards are accepted; and
Fewer charge backs: Experience has shown that migration to chip and PIN has also brought about a decrease in the number of charge backs.
Pan European Dimension
Across the European Union, more than 4,500 banks are in the process of upgrading up to a billion debit and credit cards. The SEPA project brings added momentum to the European EMV migration process. Driven by the European Central Bank and the European Payments Council, this initiative is bringing more harmonisation to the European market place. Since EMV provides a consistent card and terminal standard, the chip card is seen as a core component of the SEPA project. Under the terms of the SEPA Cards Framework , the migration process must be completed by the end of 2010. The end of 2010 can, therefore, be looked upon as the "back stop" of the entire European EMV migration programme. Chip and PIN-enabled point of sale terminals are being placed at several million merchants. The European region's ATM network is also being completely upgraded. In most European countries, the majority of cards and/or terminals have already been upgraded.
According to the latest published figures issued by Visa Europe, the chip and PIN roll out project is in a well advanced stage.
• 177 million Visa chip cards had been issued (representing 51 per cent of all Visa cards issued);
• 59 per cent of all cross-border POS Visa spending originated from an EMV compliant POS terminal;
• 40 per cent of all cross-border POS Visa spending involved both an EMV-compliant chip card and an EMV-compliant POS terminal;
• 79 per cent of all cross-border Visa ATM withdrawals originated from an EMV-compliant ATM.
The local perspective
The Malta Bankers' Association is coordinating the communication strategy behind the introduction of chip and PIN in Malta. Currently, the banks are in the process of sending out an information leaflet to all their cardholders informing them about chip and PIN. By the end of 2010, all magnetic stripe cards would have been converted to chip and PIN. These cards could be used anywhere in the SEPA area and beyond. Due to the magnetic stripe, the chip card may be also used in countries where chip technology is not available.
Bank of Valletta began its EMV project in October 2004, when it started replacing its POS equipment with new, EMV enabled machines. The bank has also upgraded all its ATMs and replaced the last POS units. During the next few months, all BoV Cashlink Visa cards will have been migrated to chip and PIN. This will be followed by the platinum and gold Cards. Our classic Visa and MasterCard will migrate to chip and PIN next year.
There are seven steps to the usage of Chip and PIN Cards. Step 1: At payment stage, checkout staff will put your card into the card reader, or ask you to do it. Step 2:I f you have a Chip and PIN card, the card terminal will recognise this and will request a PIN instead of a signature. Step 3:Follow the instructions on the PIN pad.
Check the amount and enter your secret four-digit PIN, followed by the ENTER key when asked to confirm the payment.
Make sure that no one can see your PIN by picking up the PIN pad, where possible, or shielding it with your free hand or your body. Step 4: The PIN itself is never displayed. You will see asterisks (****) instead. Step 5: If you make a mistake, press Clear, Cancel / C, and re-enter your PIN. Step 6: In restaurants and other places where tipping is common place, you may be given the choice of entering a tip or a larger amount before entering your PIN. Step 7: The screen will tell you if the PIN has been accepted and you will be issued a receipt as usual
• Mr Sant is a senior manager on EU and SME and Ms Scerri a senior manager card issuing at Bank of Valletta