Australian banks have begun rolling out debit and credit cards that feature a new eftpos chip designed to reduce fraud. The card features Europay, MasterCard and Visa (EMV) security.
“The new eftpos chip will be embedded in eftpos-only cards and replace the old chips in multi-network credit and debit cards,” eftpos managing director, Bruce Mansfield, said.
“Point of sale terminals across Australia are also being upgraded with the eftpos chip technology. This will help to further reduce eftpos fraud, which is already the lowest in the country.”
EMV is a global standard for chip cards and point of sale (POS) terminals. Approximately 820,000 POS terminals across Australia are also being upgraded with the eftpos chip technology.
The introduction of the chip means Australians who get issued new eftpos cards can use it to tap or swipe when paying for goods at stores that have contactless payment terminals.
According to eftpos, Australians make over 6 million eftpos cheque and savings transactions every day.
Mansfield said that the chip technology will be added to credit and debit cards over the next three years.
In October 2014, eftpos switched on a centralised payments infrastructure that is meant to speed up the rollout of products including eftpos online and mobile payments.
Suncorp Bank, ING Direct, Strategic Payments Services (SPS) and Bendigo and Adelaide Bank have connected to the hub, and ANZ will connect by December 2014, eftpos said.
At the time, Mansfield said he expects all eftpos members will be connected to the hub by September 2015.
The eftpos hub will replace a network of bilateral links between financial institutions and merchants that started when eftpos cards were launched in Australia during the 1980s.