From 1 August 2014 changes to credit card payments will come into affect and Australians will no longer be able to use their signature to verify credit card purchases.
Chip reading and PIN will become the only ways to use a card at point of sale, but there will be no changes to online purchases.
This has been undertaken as an initiative to reduce card fraud, which currently costs Australians approximately $81 million per year, but may pose some initial challenges to businesses.
Around 800 000 electronic payment terminals will have their software updated to no longer accept signatures as a form of payment. The roll-out is expected to take several weeks from the official start date.
It may be necessary for some businesses to invest in new portable EFTPOS machines, which can be a significant cost if your business uses multiple terminals.
It is also advisable to have a machine that can recognise chips, which some of the older models cannot do.
There are also some issues related to the new payment system that are specific to the hospitality industry. Industry representatives have expressed concern that there will be a significant reduction in tips left after a card payment, which constitutes a hefty portion of many hospitality workers’ incomes.
Our team of accountants and business specialists are at hand to speak to you about your business needs.
Call (02) 4926 2300 or email us.
If you require further information about the changes to credit card payments, please do not hesitate to contact Leenane Templeton.