28.09.2017

Sparkassen Group: PIN code replaces signature for credit-card payments

Erste Bank und Sparkassen have announced an upcoming change: As of 1 October 2017, all newly produced s credit cards will be equipped with “Code first”, which means that, similar to ATM cards, the Sparkassen group’s Visa and MasterCards will require a personal four-digit code (PIN) instead of a signature to verify payments. Ertan Piskin, Head of Card Business at Erste Bank, justified the switch citing increased security: “We want to offer our customers the highest possible security standards. At present, entering a code for credit-card payments is more secure than a signature.” The cards will be switched automatically when replaced after their respective expiry date. Existing credit cards will not change until they are next replaced, i.e. card holders will continue to sign for payments.

Preferred codes to ensure memorable PINs

The s credit-card PINs can be changed at the various branches’ ATMs if desired. “It’s easy. The customer first enters the code sent to them, and then changes it to whatever they want”, says Piskin. In addition to the new “Code first” principle, the upcoming change will also see s credit cards given an NFC function for contactless payment, enabling contactless transactions of up to 25 Euros to be made without entering the PIN.

According to the OeNB, there are currently 3.33 million credit cards in circulation in Austria. In 2016, 145 million payments were made, totalling just under 13 billion Euros. The average amount per transaction is 89 Euros. Erste Bank und Sparkassen have around 570,000 credit cards, holding thus a market share of 17 percent in this sector.