Retailers yet to fully accept PIN payment

Doing it the old way: It appears that many merchants and retailers are not prepared for the PIN and Pay system.

PETALING JAYA: Malaysia has begun its Personal Identification Number (PIN) and Pay initiative for credit and debit card users but it appears that many merchants and retailers are not prepared for it yet.

They are apparently taking comfort in the buffer period.

It is only from July 1 that signatures will no longer be accepted when cardholders make a domestic payment.

A check on restaurants, supermarkets and shops in the Klang Valley found that most merchants were aware of the PIN and Pay system.

The migration from signature to the six-digit PIN, which started in mid-2015 until Dec 31, last year, covered all credit, debit, charge and prepaid cards.

The new system is meant to verify customers for all card purchases at domestic points of sale.

But at some shops, the cashiers bypassed the PIN, allowing the customers to sign even when they were presented with the new PIN-enabled cards.

“Sorry, I did not know you wanted to use the PIN,” is their most common answer.

A hypermarket cashier even said: “Just sign, PIN and signature is the same.”

For the use of the PIN-enabled card overseas, the Association of Banks in Malaysia (ABM) said cardholders should ensure they have the PIN for their cards before travelling.

ABM executive director Chuah Mei Lin said countries that had yet to migrate to PIN would still require cardholders to sign for verification purposes.

“However, because the new card supports PIN, some countries may require payment to be completed with a PIN instead of a signature and there is a risk of the cardholder’s card being rejected if he does not enter a PIN,” she added.

Cardholders should contact their card issuer if they encounter difficulties overseas.