Because there are currently no chip and PIN cards in circulation, but
there are approximately 50 million chip only cards, it is rumoured that
the UK is moving first to chip and then to chip and PIN. This is not the
intention of the UK banks and building societies all of which are fully
committed to chip and PIN.
It is certainly true that a UK retailer picked at
random will observe a peak in chip only transactions followed by an increase
in chip and PIN transactions over the next three years. However, it is
understood that there are plans to issue the new chip and PIN cards geographically
so the chip only peak should be minimised.
It is not necessary to install chip only systems initially
followed by a further upgrade to chip and PIN. Full chip and PIN systems
will cope equally well with both types of card. What has confused some
is that certain retailers have elected to upgrade first to chip and then
to chip and PIN for specific economic reasons, not technical reasons.
