"From April 2010, all new Visa credit cards issued in New Zealand will feature secure embedded smart chips to give New Zealanders a higher level of confidence in the security of their transactions,” Mr Preston said. "This will be followed by the upgrade of Visa debit and reloadable prepaid cards from April 2012,” he added.
"Chip technology will offer banks and merchants the ability to provide their customers with benefits such as faster transactions, innovations such as contactless payments and the opportunity to store information like reward programs on their cards.”
The move to chip and PIN was part of a comprehensive seven-point security agenda that also includes initiatives to enhance the security of online transactions. Cardholders will be enabled to use a Verified by Visa password when shopping over the internet. Online retailers will be required to capture the three-digit cardholder verification number when processing transactions, while small and medium sized businesses will be required to enhance their levels of data security.
Timeline to rollout
Visa has consulted with financial institutions and merchants to agree on the following actions and timelines: