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Pen or PIN

If your business accepts MasterCard, Visa cards, American Express or Diners Club as payment, please read the following important information.

From 4 June, 2008 your customers will have the choice of either verifying their credit card transaction with their signature (as usual) or entering their Personal Identification Number (PIN) into your EFTPOS terminal.

To verify a transaction with a PIN, all the cardholder needs to do is swipe their credit card through the EFTPOS terminal, press the 'credit' button, enter their PIN then press the ENTER button.

Frequently asked questions

Q. Why has this initiative been introduced?
Q. How will this effect my current credit card processing?
Q. What happens if a customer forgets their PIN?
Q. Should I always request a PIN for a credit transaction?
Q. Will I be charged additional fees when a customer uses a PIN or signature at the Point of Sale?
Q. Will the Pen or PIN initiative affect all EFTPOS terminals?
Q. What if the EFTPOS terminal does not prompt a customer to enter a PIN?
Q. How will Pen or PIN affect Restaurants?
Q. How will Pen or PIN affect Hotels?
Q. Does this affect International credit cards?
Q. If a customer returns goods for a refund, does the customer need to enter their PIN?
 

Q. Why has this initiative been introduced?
A. Pen or PIN is a card Schemes initiative to encourage PIN usage in an effort to speed up credit card transaction processing.

Industry participants in the initiative include Visa, MasterCard, American Express, Diners Club, Woolworths, Coles and all major Australian financial institutions.
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Q. How will this effect my current credit card processing?
A. The key thing to remember is when your customers that have American Express, Diners Club, MasterCard or Visa cards press the 'credit' button, they have a choice of using their PIN or continuing to sign for their purchase.

When the EFTPOS terminal asks for a PIN, the cardholder can enter their PIN to complete the transaction or they can choose to press the ENTER button to proceed to signature verification as they have done in the past.

If the cardholder enters their PIN and the transaction is approved, there is no need to ask them to sign for the transaction.
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Q. What happens if a customer forgets their PIN?
A. Ask your customer to sign for the transaction. Use the normal procedure of pressing the 'credit' button, then the ENTER button. If the transaction is approved, ask the customer to sign the receipt, as you have done in the past.
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Q. Should I always request a PIN for a credit transaction?
A. No, customers have the choice to either sign their name or use a PIN. Please ask the customer what they prefer to do.
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Q. Will I be charged additional fees when a customer uses a PIN or signature at the Point of Sale?
A. No, you will not be charged additional fees when a customer uses a PIN to verify their transaction.
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Q. Will the Pen or PIN initiative affect all EFTPOS terminals?
A. The Pen or PIN initiative will apply to all PIN capable EFTPOS terminals. Some unmanned EFTPOS terminals will not have PIN capability and will continue to be governed by floor limits.
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Q. What if the EFTPOS terminal does not prompt a customer to enter a PIN?
A. In most cases, the EFTPOS terminal (or Point of Sale system) will print a receipt asking for a signature. Some EFTPOS terminals may not be configured to accept a PIN or the card may not have a PIN programmed to it.
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Q. How will Pen or PIN affect Restaurants?
A. Many EFTPOS terminals used in restaurants currently allow cardholders to verify their purchase with a PIN. Even when a PIN has been used, ANZ terminals will still print a merchant receipt with a signature panel. This is to allow cardholders to sign and authorise any tip amount that is specified after the PIN approval of the original purchase.

However if no tip is written and the merchant receipt says the transaction is APPROVED, then the transaction is complete and no further signature approval is required. Please note that this scenario will only occur on Tip-enabled EFTPOS terminals.
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Q. How will Pen or PIN affect Hotels?
A. Procedures at hotels will not change and customers can still enjoy the many conveniences including express check-out. The only difference is that on check-in, the hotel may ask the cardholder if they want to enter their PIN or sign to verify the transaction.
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Q. Does this affect International credit cards?
A. The origin of the card makes no difference to how the merchant processes a sale. All you need to do is swipe the credit card through the EFTPOS terminal and follow the screen prompts to complete the transaction.
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Q. If a customer returns goods for a refund, does the customer need to enter their PIN?
A. Refunds do not require the cardholder to use their PIN. Normal procedures for a refund applies.
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If you have an ANZ Merchant Facility, please view the Pen or PIN brochure (PDF, 340kb) for more information.

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