Launches Australia`s first chip credit card system

Document date:  Thu 01 Nov 2001
Published:  Thu 01 Nov 2001 09:59:06
Document No:  183322
Document part:  A
Market Flag:  N
Classification:  Progress Report 

AUSTRALIA AND NEW ZEALAND BANKING GROUP       2001-11-01  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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ANZ today announced the introduction of its multi-application chip
credit card system, the first credit card system in Australia
supported by chip-enabled merchant terminals. 

As part of a A$50 million investment in new chip technology, ANZ today
commenced:

* Upgrading one million ANZ-branded credit cards to chip technology,
starting with ANZ First and ANZ Gold Visa credit cards. ANZ chip
cards will initially feature a secure online shopping guarantee using
Verified by Visa, electronic vouchers and an electronic sweepstakes
offer. 

* Replacing 80,000 merchant credit card terminals in Australia
and New Zealand with new chip-enabled MultiPOS terminals. 15,000
terminals will be replaced by mid-December 2001.

ANZ Managing Director Cards and e-Payments Mr Brian Hartzer said the
launch established ANZ as the first bank in Australia to introduce a
fully functioning, end-to-end chip technology system for customers
and retailers.

"By upgrading customer cards and replacing terminals we are putting
in place the foundation for the broad-based introduction of chip
cards in Australia, capable of evolving over time to deliver services
from banking to mass-transit," Mr Hartzer said.

"ANZ has been fortunate to work with Visa and other partners such as
ECard who have each made a significant contribution to the
development of our chip technology system. The potential of chip
technology is enormous and ANZ will continue to identify and add
applications to benefit cardholders and retailers.

"The chip will enable us to continually enhance the benefits the card
provides through features such as a personalised web portal, while
the flexibility of the MultiPOS terminal will enable retailers to
participate in point-of-sale offers from ANZ and even potentially
offer their own card-based loyalty programs to customers," he said.

Replacement of the majority of ANZ-branded Visa cards and merchant
terminals will be complete by September 2002. All ANZ chip cards and
terminals comply with the Europay Mastercard Visa (EMV) standard for
secure transactions at the point-of-sale.

"With rising credit card fraud, the chip also means it will be harder
for criminals to counterfeit ANZ's credit cards, and Verified by Visa
will provide added security for online shopping. Ultimately, as
credit cards are upgraded to chip, the EMV standard will also provide
protection against credit card skimming and other types of fraud," Mr
Hartzer said.

Applications for an ANZ First chip credit card can be made online at
www.anz.com/first, over the phone on 13 33 33, or at any ANZ branch.

For media enquiries, contact: 
Paul Edwards
HEAD OF GROUP MEDIA RELATIONS 
Tel: 03-9273 6955 or 0409-655550
Email: edwardp12@anz.com


MEDIA BACKGROUND NOTE: KEY FEATURES OF THE ANZ CHIP CARD SYSTEM

EUROPAY, MASTERCARD VISA (EMV) STANDARD

The EMV standard was developed by Europay, MasterCard and Visa
following the introduction of increasing numbers of chip card
programs. EMV specifications ensure there is interoperability between
chip cards and terminals around the world, regardless of the
manufacturer, the financial institution or where the card is used.

ANZ's chip cards and MultiPOS terminals are compliant with the EMV
standard for secure transactions at point of sale, which means ANZ
chip cards can not be fraudulently used at MultiPOS terminals because
a PIN will be required. This service will not be activated until the
card and terminal rollout has reached a critical mass during 2002.

MULTIPOS TERMINALS

For retailers, the new MultiP0S terminals are smaller, quieter and
faster than ANZ's existing EFTPOS terminals. In addition to providing
standard credit card and EFTPOS transactions, the chip capability
opens new opportunities for merchants, who may be able to offer their
own card-based loyalty programs over time, as well as participate in
point-of-sale offers from ANZ.

VERIFIED BY VISA AND SECURITY

Verified by Visa is a new authentication technology protocol,
designed to increase consumer confidence by confirming the identity
of both buyer and sellers conducting financial transactions on the
Internet. ANZ cardholders shopping online at participating Verified
by Visa merchants worldwide will be asked for their password,
providing an added level of security and minimising the risk of
fraud.

Cardholders can also choose to shop online via a chip card reader
connected to their PC. Using a reader will open up additional
opportunities for cardholders over time, such as downloading
eVouchers to their card.

ANZ CHIP CARD WEB PORTAL

ANZ is building a personalised web portal for customers to manage
their chip card online. The website will feature Verified by Visa,
the ability to order a free chip card reader, a shopping mall and
will be integrated with ANZ Internet Banking. Expected to be launched
by the end of 2001, the web portal will grow and change, with new
functionality added over time.

EVOUCHERS AND SWEEPSTAKES OFFER

In addition to the standard features of ANZ First and ANZ Gold, the
new chip credit card is loaded with ANZ eVouchers, providing
exclusive offers and instant rewards for cardholders at Prouds
Jewellers, Bed Bath N' Table and Red Earth. To redeem an eVoucher for
an instant reward, cardholders simply need to 'dip' their card in the
MultiPOS terminal at a participating store.

Cardholders will also have a chance to win an overseas trip via the
sweepstakes offer loaded onto the chip card. Cardholders simply need
to dip their card into the merchant terminal at any Harvey World
Travel outlet by 31 January 2002 for a chance to win a trip valued at
up to $11,000.