The Australian Competition and Consumer Commission (ACCC) is proposing to allow Visa and MasterCard, together with American Express and participating financial institutions, to coordinate in relation to the removal of signatures as a method of authentication for most credit card transactions that are completed in person.
The ACCC said without this coordination, Visa and MasterCard would each independently implement mandatory PIN@POS, and American Express would also make similar arrangements, as the mandatory use of PINs is considered by credit card providers and financial institutions to be an important tool to combat fraud.
“A coordinated approach and a single message from industry is likely to lead to some efficiencies and less confusion for customers and merchants,” ACCC Commissioner Dr Jill Walker said.
The ACCC proposes to grant authorisation until 30 June 2015, to allow the applicants to delay the implementation beyond the current dates proposed if necessary.
The ACCC has also granted interim authorisation to allow the parties to reach agreements with American Express regarding its involvement in the coordinated implementation of mandatory PIN@POS and the associated public communications campaign.