Launches Australia`s first chip credit card system
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 +++++++++++++++++++++++++ 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: email@example.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.