Tag Archives: Point of sale

Spread the word on 12 Safety Tips for Debit/Prepaid Card PIN

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            The full form of PIN in the digital payment world is Personal Identification Number. It is often spoken as PIN Number, which is incorrect.

The PIN is numeric password which is shared between a user and a system. This PIN authenticates the user on the system.

Normally, apart from the PIN which is not physically visible, a physical token or a User Id are used together to let the User access the system.

The system looks up the PIN based upon the user ID and compares the looked-up PIN with the received PIN. The user is granted access only when the number entered matches with the number stored in the system.

Hence, the User ID/Physical Token should be kept separately.

In India, with effect from today PIN is mandatory for Debit Card/PrePaid Cards on POS terminals.

Remember the same PIN can be used to withdraw Cash from an ATM and also complete your shopping at POS Terminals. Hence, it becomes more important to safeguard your PIN. 11 golden rules to safeguard your bank account:-

01) Beware of “Shoulder Surfing” i.e. shield your PIN from onlookers by using your body.

02)Use your hand or body to shield your Personal Identification Number (PIN) when you are conducting transactions at the Automated Banking Machine (ABM) or at the point of sale.

03)Never let your Debit Card/Prepaid Card out of your sight when conducting a transaction.

04)Never ever shout your PIN across shopping counters.

05)Only allow your card to be swiped once and always remember to take your Debit /Prepaid Card and transaction record with you once your transaction is completed.

06)If you feel you need to keep a copy of your PIN written down somewhere (not recommended), keep it in a place separate from your Debit/Prepaid Card. Never keep them together.

07)It is advisable that you know your available balance before you make any POS  purchase.

08)Double check the amount entered by the cashier before you key-in your PIN to authorize payment of your purchase.

09)Your PIN should not:

• Be easily associated with other personal information such as phone number, birthday or part of Aadhaar Number.

• Be part of your card or account number

• Be the same digits or a sequence of running digits

• Be the same as a previously used/selected PIN of this Debit/Prepaid Card or any other Debit/Prepaid card.

10) In addition, if you have multiple Debit/Prepaid Cards,  should never assign the same PIN to all PINned cards – if someone steals your wallet and discovers your PIN, you may rest assured they will test that PIN against all cards in your wallet.

11)  In case you feel it is difficult to memorize all of the PINs for your cards and must carry a written record, it is very important that any PINs be thoroughly disguised. For example, the PIN may be embedded in a list of phone numbers and, desirably, amended through some formula only you would know.  Yes, the formula should not be remembered.

12) Also, this list should never be carried closely adjacent to the card. For example, both should not be together in your wallet.

PIN compulsory in India for all debit card usage from today

chipandpin_Fotor            Remember your PIN for day to day shopping.  

Till yesterday i.e 30/11/2013, banking customers in India did not require the PIN to be punched in the POS terminals.  The PIN was compulsory for only ATM transactions.

However, from today, the keying of the PIN is mandatory to complete POS transactions.

So, if you go to a supermarket/or any other physical shopping and wish to pay via your debit card, the TAT will increase, as the billing machine and the POS terminals are not together.

This step is to minimize frauds arising out simple debit cards.  In June, the Reserve Bank had extended the deadline for implementation of mandatory PIN punching at Point-of-Sales (PoS) and merchant outlets till November 30 following a representation from banks.

The Banking industry was hoping an extension of the due date once again. However, this did not happen, so the Banks started educating customers on safety tips for PINs at POS terminals, at the last moment.

SBI (Big Daddy) finally enters the Cash@POS arena

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Would you like to withdraw cash at your local supermarket/grocery store? Just to refresh reader’s memories. Way back in 2009, Reserve Bank of India, permitted Banks to offer cash withdrawal facility at POS(Point of Sales) Terminals.

During the last 5 years there was not much traction in this ePayments division. Banks like IDBI entered had offered the Cash@POS to their debit card holders. However, the transactions volumes were negligible and there were very few marketing campaigns by the Banks.

The Big Daddy of Indian Banking i.e State Bank of India plans to deploy over 1.25 lakh point-of-sale (POS) terminals in the next 18 months at various merchant outlets and counters at branches across the country.

POS terminals help customers carry out cashless transactions at merchant outlets by swiping credit/ debit cards on the POS machine.

Further, the terminals also facilitate withdrawal of cash (up to a maximum of Rs 1,000 a day according to existing RBI guidelines) using debit cards at designated merchant outlets.

As the merchant outlets have to be physically manned, the Cash withdrawal at POS terminals will help the merchants reduce the risk and costs associated with handling cash and also earn a small commission.

The terminals that SBI is planning to roll out will enable transactions using credit, debit and pre-paid cards. Besides, they will also support signature based, chip based and personal identification number based cards.

In its annual report, SBI said “In order to create a comprehensive electronic infrastructure in the country, activate the debit cards on PoS terminals, increase visibility and tap the huge potential available in the market, Merchant Acquiring business is being conducted by the bank.”

In line with RBI’s proposition to allow cash withdrawals through prepaid cards issued by banks from point of sale terminals, India’s biggest lender has come up with the Cash@POS facility across the country from last week that lets merchant shops act as ATM counters.

This helps customers to withdraw about Rs 100 to Rs 1,000 per debit card per day at any of this point of sale (PoS).

“Though the facility will be made applicable to all debit cards issued in India, to start with, we are rolling out the facility with SBI group debit cards,” said P.V. Rajamani, AGM, merchant acquiring business, of the bank.

 

This includes customers of State Bank of Travancore, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Patiala and State Bank of Mysore.

Though RBI had permitted cash withdrawals at PoS terminals through debit cards way back in 2009, the service had not taken off owing to various reasons including lack of clarity on processing fee structures. In other countries, stand-alone cash withdrawal at POS terminals is not permitted. Bank customers have to club their purchase payments and cash withdrawals in a single transaction. However, in India, stand-alone cash withdrawals at POS Terminals are permitted. Hence, this is an attractive feature for merchant outlets to offer at their end.

For now, a convenience fee of one per cent of the transaction amount will be levied on the cardholder which can be anything in the range of Rs 7.50 to Rs 10. This convenience is less when compared with the cost of travelling to an ATM.

Merchants will be paid an incentive of Rs 5 for every successful transaction along with the cash paid to customers.

Wonders of Cash-Less Policy of Central Bank of Nigeria

 

As the cost associated with handling cash is high compared to other payment channels, Central Bank of Nigeria introduced a new Cash-Less policy to minimize cash-based transactions.

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Yes, cash transactions cannot be eliminated 100%, but efforts can be made to reduce them. Apart from communications on benefits of moving cash transactions to alternate channels, one more option adopted by Central Bank of Nigeria, is the ‘cash handling charge’ on daily cash withdrawals or cash deposits that exceed N500,000 for Individuals and N3,000,000 for Corporate bodies

The Cash-Less policy was initially rolled out in Lagos and subsequently to the full country.

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There were apprehensions that Central Bank of Nigeria was contemplating to eliminate cash transactions completely. However, subsequently a number of communication materials were released to emphasis that the policy is to reduce ‘cash transactions’, and not eliminate them.

Cash withdrawals through any mode i.e Over-the-counter, ATM withdrawal etc are added to cumulative limit.

The cash collected through ‘Cash-in-Transit’, mode is also included as cash deposits in the respective corporate bodies’ limits.

The benefits of the Cash-Less policy are already visible in the Nigerian economy.

Another key point of the policy, is that 3rd party cheques above N150,000 will l not be eligible for encashment over the counter. Value for such cheques shall be received through the clearing house only.

All the POS terminals in Nigeria are equipped with a minimum of 24 hours battery operating power, and majority of them have a car charger too.