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Visa, which operates the world's biggest electronic payment network, aims to phase out the use of signatures for payments by credit cards as part of a move to increase transaction security.
Visa released a five-year agenda for Australia yesterday to increase the security of its payments system. The plan includes speeding up the issuance of payment cards with chips and making all payment terminals and automatic teller machines capable of being used with such cards.
Visa also aims to roll out the use of verification based on personal identification numbers (PINs), which is already in use, for all Australian transactions with the aim of ending the use of signatures.
Merchants will also be required to verify the three-digit security number on the back of cards.
Shops and other businesses will also be required to verify the three-digit security number on the back of cards.
Although fraud in Australia is low by world standards, Visa is introducing the changes to increase security as more and more people use electronic and internet based payments.
"The time is now right to take advantage of new technologies and to strengthen the system," Visa general manager for Australia, New Zealand and the South Pacific Chris Clark said in a statement.
"The initiatives planned for the next five years will help to combat further all types of fraud and make the system quicker and easier to use."
- AAP
