| The chip and pin machine was first tried in | | | | benefits of the chip and pin machine are the fact that |
| Northhampton, England in May of 2003. Since the | | | | they are user friendly and a stolen card is worthless |
| launch was so successful the machines then went | | | | without the correct 4-digit pin code. Credit card fraud is |
| nationwide in the United Kingdom in 2004. The very | | | | down almost 75% since the introduction of these |
| popular "Safety in Numbers" slogan was used to gain | | | | machines. |
| the trust of the public. | | | | With the increased security it is easy to see why |
| The transformation came as a labor intensive change | | | | switching to this method is commonly accepted by |
| to most banks and credit card companies as they | | | | almost all retailers and restaurants. To continue with |
| scrambled to exchange older cards with the new | | | | the old methodology of using the previous machines |
| updated cards. Many of the banks stated that they | | | | these companies would be risking too much and the |
| would replace cards once they were expired, | | | | liability for credit loss would fall on the company. As if |
| however with the amount of cards not set to expire | | | | the benefits to the purchaser were not great enough |
| for years the pressure was placed on these | | | | the liability factor has all but guaranteed that all |
| organizations and cards were replaced at the | | | | businesses will soon follow suite. |
| consumer's wish. | | | | The chip and pin machine is a big advantage to |
| Previously, when using a credit card it required handing | | | | companies and consumers. When a company uses |
| your card to an attendant or employee who would | | | | other machines they become liable on many different |
| scan your card or imprint it. With identity theft and | | | | levels. Other machines can allow the cards to be |
| credit card theft at an all-time high it is not surprising to | | | | stolen, cloned, copied and/or lost. Also if a different |
| see more retailers going to a chip and pin machine for | | | | machine is used the company could be liable for the |
| verification. | | | | charges applied to the card after it was used at that |
| These machines often let the purchaser keep the card | | | | businesses establishment. |
| in their own hands while scanning and then entering | | | | Customers feel safer when purchasing items or goods |
| their personal pin number for verification. The cards | | | | without having to hand over their credit card. There is |
| contain an embedded microchip that stores the data | | | | no liability on the company, only the customer can lose |
| for each individual card. Once the card is swiped the | | | | his or her card. It is much easier for a company to gain |
| purchaser is prompted by the machine to enter in their | | | | new customers when they make them feel safer and |
| personal pin number and once the number is verified | | | | happier. |
| the transaction is completed. | | | | There really is not any reason why a company would |
| Before these machines were being utilized it was not | | | | not want to have a chip and pin machine for their |
| uncommon for credit cards to become cloned or | | | | business. The cost is relatively low, customers prefer |
| copied. On top of being safer some of the greatest | | | | them and it just makes life easier. |