Friday, 24 March 2023

SBP made it mandatory for all banks to issue Europay MasterCard Visa (EMV) cards

On Friday, the State Bank of Pakistan made it mandatory for all banks to issue new payment cards based on the latest SBP made it mandatory for all banks to issue Europay MasterCard Visa (EMV) cards technology by June 30, 2021. Cards will be activated in advance so customers can pay from the first day of issue.

Earlier, cardholders needed to activate them through phone banking or ATM. In addition, merchants at Point of Sale (POS) will not be required to enter PIN codes to pay up to Rs 3,000 for online shopping with the new cards. Banks can reset the PIN code free payment limit according to their risk policy.

According to the State Bank of Pakistan, these features have been introduced with the aim of creating a functional environment for online shopping (e-commerce) and reducing the transaction time of merchants on POS, according to the State Bank of Pakistan. ۔

Europay MasterCard Visa (EMV)

The central bank said in a statement, “To eliminate the risk of fraudulent payment card scams by counterfeiters, the SBP directed that ATM and POS networks in Pakistan should limit to EMV chips and PIN. ” “The new initiative will boost the online e-commerce ecosystem and shape consumer behavior towards online e-commerce digital payments in the country,” it said.

Citizens can use Chip-based EMV debit and credit cards to pay off debts at banks as well as to pay monthly installments for car and personal loans. Earlier in 2019, the SBP directed banks to implement the 3D Secure Protocol (EMV-based card) to prevent fraud in online transactions and as a result, 15 banks allowed to go online. It has already adopted this international standard for securing transactions.

New Era of Digital Payments

The move, aimed at further strengthening the security of digital payments and reducing the risk of fraud, marks the end of SBP’s efforts, which began in 2016 when it introduced the EMV chip for payment cards in Pakistan. And introduced a detailed road map for adopting pin standards. Banks also directed to increase their efforts to facilitate customers in case of any problem using their payment cards.

Ads: (Online Tax Course)

To promote digital payments, the SBP is taking steps to make them more secure, introduce new features and promote their use,” the SBP statement said. Consumers will be able to lodge complaints through digital channels without having to visit any bank branch. The SBP has directed the banks to implement all these measures by June 30, 2021.

To facilitate and expedite small payments, the SBP has allowed banks to relax the requirement to enter PINs for transactions up to Rs 3,000. Banks, depending on their risk management policies, may decide to waive the amount required for PIN in card transactions, including contract less payments. To move payments towards digitalization, SBP has directed all banks / microfinance banks to use any bank’s internet and mobile banking applications digitally to repay loans such as consumer loans and auto loans.

What is a digital payment?

digital payment, sometimes called an electronic payment. Is the transfer of value from one payment account to another. Using a digital device such as a mobile phone, POS (Point of Sales) or computer, a digital channel communications such as mobile wireless data or SWIFT (Society for the Worldwide Interbank Financial Telecommunications).

What are the types of digital payments?

  • Banking Cards.
  • Raast Payment system
  • Mobile Wallets.
  • Banks Pre-paid Cards.
  • Point of Sale.
  • Internet Banking.

Advantages & Disadvantages of E-Payment

  • Advantage: Increased Speed and Convenience. E-payment is very convenient compared to traditional payment methods such as cash or check. …
  • Increased Sales. …
  • Reduced Transaction Costs. …
  • Disadvantage: Security Concerns. …
  • : Disputed Transactions. …
  • : Increased Business Costs.

Source | Digital Payments | SBP | State Bank of Pakistan | Banks |

Related posts

Revised profit rates of National Savings Schemes 2023

Table of Contents Revised profit rates of National Savings Schemes 2023National Savings Profit…
Read more

What is the Raast Payment System?

Table of Contents What is the Raast Payment System?what is the Purpose of Raast ID?How do you use…
Read more

SBP Revises Limit of Foreign Currency Carrying for Travelers

Table of Contents SBP Revises Limit of Foreign Currency Carrying for TravelersRevised Limits of…
Read more
Subscribe Now

Sign up for  Daily Digest and get the best of News for you.