PINs set to eclipse signatures by 2009

Research just released in the US suggests that, in North America at least, plastic card users will increasingly move over to PIN protection in place of signatures.

The research, from Financial Insights, claims that PINs will take over from signatures by 2009.

What's interesting about the research is that it acknowledges that the US is behind Europe in this regard.

The change to PINs is being driven, says the research firm, by legal pressures weighing on Visa and MasterCard that are likely to force down interchange fees, so making PIN debit cards more attractive to issuers.

Interchange fees, in case you were wondering, are the fees paid by the card processors to Visa and MasterCard, for processing the transactions through their networks.

As I've said before, I remain to be convinced that PINs are less risky than signatures. The scope for fraud once you have a PIN for a card is a lot more than if you can forge the signature.

Cash, purchases - all are possible with a card and PIN. The world is your lobster, eh Rodders?