Chip and PIN cards can cause problems for elderly, disabled, says consumer watchdog |
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Tue, 31 Jan 2006 10:15
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LONDON: A consumer watchdog has criticised the banks in the country for their failure to educate the elderly and disabled customers properly on how to use the chip and PIN-based cards, which are set to be introduced on 14 February.
The National Consumer Council (NCC) says up to three million vulnerable customer will face problems in using the cards, basically remembering and properly keying in the pins.
NCC said banks should publicise that such customers can avail of non-pin number cards.
Consumers with a chip and pin card will not be able to sign for a purchase from 14 February, when the cards are nationally introduced, and this will lead to consumers who do not remember the four-digit pin number or do not know how to key it in, will have their cards refused at shops and payment denied.
Claire Whyley, deputy director of policy of NCC, said it had asked the banks to conduct an information campaign a year ago and to improve the bank staff's awareness of the alternatives to the system. "We are really disappointed that banks haven't taken their responsibilities to vulnerable customers more seriously. Three million people could find themselves high and dry at the checkout," she said.
The Association of Payment Clearing Services (Apacs), however, contended that its research had indicated that most people with visual impairments and disabilities found chip and pin as easy to use as the old signature system.
An Apacs spokesperson, Sandra Quinn, said some disabled cardholders may find using a pin more difficult and "we are pleased to see that they are contacting their banks ahead of the change and requesting a chip and signature card so they can continue to sign".
She said nearly 100,000 chip and pin signature cards have been issued so far.
However, this is comparable with 127 million standard chip and pin cards currently in circulation.
The chip and pin cards aim to cut fraud as it has a smart chip, which stores more information than the magnetic strips and help the users to verify transactions by keying in a pin number that is unique to the card and is supposed to be known only by the cardholder. The process of signing the receipt is avoided.
Charity groups like Help the Aged have backed the NCC's campaign. A spokesperson for Help the Aged told the banks to change the banking code making it necessary for them to provide more information about the alternatives.
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