Do you need a PIN to use a credit card?

Answer 1

Currently, you do not need a pin number to use your credit card.

However, when the credit card companies switch from the magnetic strip to the computer chip (Visa & MasterCharge wants to convert all credit cards to this new technology by April 2013), you will have to use your pin code for all transactions.

This implementation has been delayed because Visa and MasterCharge cannot get the readers to acept the data. This will require all merchants to get the new readers when this goes into effect.

By the way, Visa and MasterCard are forced to convert to this new technology because merchants in Europe and Asia will not accept the old fashion magnetic striped cards because they are not secure enough. Visa and MasterCard are loosing hundreds of millions dollars in lost revenue in interchange fees and currency conversion fees.

Here is a fact that most Americans are not aware of regarding both credit cards and debit cards.

Both of these financial instruments were never designed to be a security feature for the consumer to use to protect themselves.

The four digit pin codes on both Credit and Debit Cards were originally designed to only allow you to withdraw monies from ATM machines. My first credit card was a BankAmericard (BOA - 1972) that allowed me to withdrawal money against my line of credit on my credit card. This was issued to only people with good credit. There was no debit cards in 1972 (only bank ATM Cards) and the credit card companies were making a killing on the fees (BOA).

As of now (and for the last 42 years), the four digit pin code you have for your credit cards is still only used to take a cash advance on your line of credit. However, the fees in 1972 was $.50, now they are 3% of your withdrawal amount or a minimum fee of $10.00.

Debit card pin codes can now be used in gas pumps (not a good idea) or anywhere a merchant has a pin pad you can use. You can swipe your debit card as a credit and it gets processed at a higher processing rate (more money for banks) off-line or use your pin code for security and its processed on-line (usually clears your bank in 48 hours).

Again, when they convert the credit card systems from the magnetic stripe to the computer chip, its will be the first time in over 42 years that the American consumer can use the 4 digit pin code on their credit cards for security on all transactions, not just ATM usage.