Positive response to Chip & PIN, but caution sounded
According to a study conducted in May by Harris Interactive amongst credit card holders in Great Britain, the introduction of Chip & PIN has, in the main, been positively received.
Over half (55%) view the introduction of Chip & PIN positively, with about two-thirds of respondents (65%) agreeing that they feel comfortable using Chip & PIN. These findings correspond with the view from APACS which declared a smooth and trouble-free implementation of Chip & PIN giving a safer retailing environment.
Reasons given for the positive outlook are quicker transactions and increased security. Almost half (47%) of credit card holders agree that Chip & PIN is quicker than signing your name, and a similar proportion (46%) agrees that Chip & PIN is more secure. Understandably, there are strong links between consumer attitudes towards Chip & PIN and perceived levels of security and comfort. Amongst those who feel positive about the introduction of Chip & PIN, about three quarters (74%) believe that Chip & PIN is more secure than signing your own name. In addition, among those who believe Chip & PIN is more secure, 88 percent say they feel comfortable using it. Consumers also appear to understand security issues relating to Chip & PIN, with only about a quarter (24%) indicating they use the same PIN across all cards.
However, the outlook is not all positive. A substantial minority (17%) of credit card holders view the introduction of Chip & PIN negatively and 14 percent feel uncomfortable using Chip & PIN, a feeling that is more prevalent amongst females (17%) than males (11%). Interestingly, 68 percent of those who feel uncomfortable using Chip & PIN disagree that it is more secure than signing your name.
A key reason for feeling uncomfortable could be a fear of being watched during transactions. Just under two-thirds (63%) of credit card holders agree that they are conscious of people watching them enter their PIN, rising to 69% amongst females. Almost nine in 10 (87%) of those who feel negative about Chip & PIN are conscious of being watched while entering their PIN.
Forty-one percent of credit card holders do not know the PIN to all of their cards and only 24 percent use the same PIN across all of their cards. These findings help explain the fact that 18 percent of credit card holders claim they are using fewer credit cards now on a regular basis since the introduction of Chip & PIN. Those saying they are using fewer cards rises to more than one-third (39%) amongst those who do not know the PIN to any credit cards held.
Understanding of Chip & PIN, (i.e. those who know how to change their PIN or know how to unlock their card) varies widely. While more than four in five adults (84%) know how to change a PIN number, less than one third (31%) know how to unlock their PIN if it becomes locked.
Amongst those who have greater understanding of Chip & PIN (i.e. those who know how to change their PIN or know how to unlock their card), the number of credit cards they use on a regular basis has remained stable. Interestingly, amongst those who use the same PIN number across all their cards also maintain the number of credit cards they use on a regular basis. Understanding of Chip & PIN also impacts on how comfortable credit card users feel using Chip & PIN. Understandably, those who know how to unlock their PIN or know all their PIN numbers are more likely to feel comfortable using Chip & PIN.
[b]Debit cards[/b]
Almost two out of five credit card holders (18%) agree that they have paid for more items with their debit card(s) since the introduction of Chip & PIN, rising to about one quarter (26%) amongst those who say they do not know any of their credit card PIN numbers.
About one in ten (9%) agree they have used their credit cards more since the introduction of Chip & PIN.
Frances Green, Director of Financial Research at Harris Interactive (UK) said, “Levels of comfort and positive attitudes towards Chip & PIN are good news for the industry. However, it is clear that small, but not insignificant, proportions of consumers still feel uncomfortable and unfamiliar with some aspects of the Chip & PIN process.
Thus it is important that providers maintain open channels with all card holders, giving them access to the information they need regarding their PIN. The introduction of Chip & PIN should be seen as an opportunity to communicate with consumers, rather than a barrier to trade. At the same time, retailers need to ensure that customers feel secure and protected whilst purchasing goods in their stores.”
