Point of Sale: What To Remember When Punching Out Your ATM PIN

You must have received an SMS from your bank about the new regulation about entering your ATM PIN when swiping your credit/debit card at a point of sale (PoS). This is the newest development to secure card transactions. This has been mandated by the RBI with effect from December 01, 2013.

This step was taken to reduce instances of card fraud, which has been a top priority for the central bank. Introduce this measure as a second layer of security will certainly help the regulators and card holders.

User also need to take certain precautions to make transactions secure. First, when you are entering the PIN, ensure that you are not punching it in front of anybody, which is most common when you are making a payment in a hyper market.

In addition to this, the RBI had also asked banks to replace all magnetic strip cards that have been used for international transactions at least once. According to the regulator, these were supposed to have been replaced by EMV chip-based cards by November 30, 2013. If you fall in this category but haven't received a chip-based card yet, you need to make enquiries with your bank. Chip-based cards will also require a PIN for PoS transactions.

The RBI has also said that the banks will have to bear all losses if incurred by any card holder due to misuse after expiry of the deadline. Customers who have not got chip cards have to set a threshold limit which is not more than USD 500 per day. This limit can also be increased in consultation with the bank.

Though it adds a step or two to your transaction process, the benefits outweigh the bother. Make sure that you follow the best practices as explained above to avoid misuse of your card. If you have any misgivings, stick to cash for the time being.