Feb 14, 2006

UK retailers report that Chip and PIN has generated significant cost savings and faster transaction times

Visa UK has released the findings of research into the ‘Retailer Experience of chip and PIN’. The report reveals that chip and PIN has provided a number of significant benefits for retailers.

66.8% of retailers stated that they now have fewer concerns about fake cards. This result is to be expected. Interestingly, approximately the same number of retailers also felt that chip and PIN has generated cost savings, with 62% finding that chip and PIN transaction times were faster, saving 55¼ hours per week for a normal supermarket and an estimated £24 million nationwide per annum. Entering a PIN code is faster than signing a receipt and verifying the signature. Plus, chip and PIN transactions are often performed off-line, instantly, without the need to wait for payment approval from the bank.

Just over half of retailers questioned (54%) felt that chip and PIN has made customers more ready to use their cards as a form of payment. Overall the average increase in debit and credit card usage was estimated at around 5% equating to around 1.2 million extra transactions or £58.7 million in transaction value for the retail sector as a whole.

Colin Grannell, Managing Director and Executive Vice President, Visa UK, said, “The findings of our research are encouraging as they show that retailers and retail staff are reaping tangible rewards from chip and PIN roll-out - not only in terms of the intended goal to tackle fraud, but also as a way of speeding up the sales process, increasing turnover, reducing staff stress and helping to cement customer loyalty.”

Source: Chip and PIN generates significant saving to retailers

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