What is Chip and PIN?

The chip is part of your card – it’s the small gold or silver coloured square on the front of your card on the left hand side.

When you put your card in the terminal, the chip tells the terminal that it’s your card, then the terminal waits for you to enter your PIN, just like at a cash machine. When your PIN and the chip match, the transaction is authorised.

Nowadays, with contactless technology, you don’t even need your PIN to buy something for £10 or under. If your card includes contactless payment technology, simply hold your card close to the contactless reader and you’re done. However, you’ll still need your PIN for anything over £10, plus every now and again when the machine will carry out a security check and ask for your PIN. Find out more.

What makes Chip and PIN safe?

When you bought something before 2002, you needed to sign a receipt slip.

Chip and PIN was introduced because while someone can forge your signature, they can’t forge your PIN. They need it to make the card work. That’s why it’s important to keep your PIN secret and separate from your card.