Photograph of a POS terminal used for Chip and Pin card payments

Chip&Pin, which began to be implemented in our country on March 31, 2006, is a new payment method that greatly reduces the risks of credit card copying and loss/theft fraud. In this method, the chip on the credit card reduces the risk of the card being copied.
The 4-digit password (PIN), on the other hand, largely prevents the card from being used by others if it is lost or stolen.
Under the Chip&PIN scheme, you are required to enter your PIN for every purchase made with your credit card. For transactions completed with PIN verification, the customer does not need to sign.

For PIN Bypass transactions (where the PIN entry step is skipped by the store clerk), the customer's identity and signature must be verified.

Does Chip&Pin apply to all transactions made with a credit card?

Chip&PIN only applies to transactions carried out with a physical POS and a physical card by reading the chip. It does not apply to transactions made over the internet, or to transactions on physical POS terminals where the card details are entered manually.

Does Chip&Pin apply to contactless transactions?

Since the chip is not read in contactless transactions, Chip&Pin does not apply to contactless transactions.

Does Chip&Pin apply to debit cards (ATM cards)?

The answer to this question depends on whether the ATM card has a chip. If the ATM card has a chip, Chip&Pin applies. If the ATM card does not have a chip, Chip&Pin does not apply.

Does Chip&Pin apply only to POS devices?

Chip&Pin applies to all devices that can read the chip on the card and take action based on that information. For example, Chip&Pin also applies at ATMs.

What are the steps of the Chip&Pin process?

The steps of the Chip&Pin process are as follows:

  1. At the payment stage, the merchant's (store) clerk inserts the chip card into the POS's chip reader.
  2. The merchant's (store) clerk enters the transaction amount.
  3. The chip reader checks the values on the card and directs it to the PIN entry screen.
  4. At the PIN entry stage, after checking the purchase amount on the screen, the 4-digit PIN must be entered, and the "Enter" key pressed to confirm the payment. Since the PIN is personal, it is not shown on the screen. Instead, an * is displayed for each digit.
  5. If a mistake is made while entering the PIN, the "Clear" key can be pressed to re-enter the PIN.
  6. If the PIN is correct, a message confirming that the payment has been completed appears on the screen.
  7. When the transaction is approved, the receipt generated for the transaction prints the phrase "PIN VERIFIED".
  8. In the Chip&PIN process, a verified PIN is accepted in place of the customer's signature.