Pakistan’s central bank made it mandatory on Friday for all banks to issue new payment cards based on the latest Europay MasterCard and Visa (EMV) technology by 30 June 2021.
Moreover, The cards would be pre-activated to allow customers to make payments from the first day of issue.
Previously, cardholders were required in the bank to activate them through telephone banking or ATMs. in Addition, there will be no need to enter PIN codes to make payments of up to Rs3,000 for online purchases or merchants at points of sale (POS) using the new cards.
However, Banks can reset the PIN code-free payment limit according to their risk policy.
EMV Cards Features by SBP:
State Bank of Pakistan also introduced features to create an enabling environment for online shopping (e-commerce) and reduce the transaction time in POS for the merchant.
“To eliminate the risk of payment card theft by fraudsters, SBP has determined that the ATM and POS networks in Pakistan will only accept payment cards also compatible with EMV and PIN chips in the country,” the state bank said in a statement.
“The new measure should promote the online e-commerce ecosystem and shape consumer behavior concerning digital online e-commerce payments in the country,” he said.
People can also use Chip-based EMV debit and credit cards for repaying bank loans, as well as paying monthly installments for cars and personal loans.
EMV For Security:
In early 2019, SBP instructed banks to implement the 3D Secure protocol (EMV-based cards) to prevent fraud in online transactions, and as a result, 15 banks have already adopted this international standard to protect online transactions.
Moreover, Banks that have already implemented 3D Secure (an international standard that protects online e-commerce transactions) can activate their customers’ payment cards for online e-commerce transactions without the need for specific activation requests.
The measure, which aims to further strengthen the security of digital payments and also reduce the risk of fraud, is the culmination of SBP’s efforts that began in 2016 when it introduced a detailed roadmap for the adoption of the EMV chip and the PIN standard for credit cards. payment in Pakistan.
SBP also instructed to bank to increase their efforts to facilitate customers in case they face any problems when using their payment cards.
“To promote digital payments, SBP has taken steps to make them more secure, introducing new features and promoting their use also,” says the SBP statement.
Furthermore, “Customers will be able to make complaints through digital channels without having to go to a bank branch. The State Bank also instructed banks to implement all of these measures by June 30, 2021. ”
In an attempt to make small payments easier and faster, SBP has also allowed banks to relax the requirement to enter PINs for transactions up to Rs3,000.
“Banks, depending on their risk management policies, can also decide the amount that can be excluded from the PIN requirement for card transactions, including contactless payments.”
Moreover, Enhancing the momentum towards digitizing payments, SBP has guided all microfinance banks to take steps to facilitate their borrowers in paying off loans, such as consumer loans and auto loans, digitally using the Internet and applications of any bank’s mobile bank.