Chip & PIN
The secure card payment method where a customer inserts their chip card and verifies with a PIN.
What It Is
Chip & PIN is the secure card payment method where a customer inserts their chip card and verifies with a PIN.
It replaced signature-based payments in the UK and remains the gold standard for higher-value in-person transactions.
How It Works
The chip generates a unique code for each transaction and the PIN confirms the cardholder, making fraud far harder than with a signature.
Because each transaction code can't be reused, even a copied card is far harder to misuse.
When It's Necessary
The standard for higher-value in-person payments and any transaction above the contactless limit.
If a tap is declined or the amount exceeds the contactless limit, the customer falls back to chip & PIN.
Business Impact
Reduces fraud and chargeback risk, protecting your takings and your liability on disputed transactions.
Properly verified payments are far harder for a customer to dispute, protecting your revenue.
Quick Summary
- What It Is
- How It Works
- When It's Necessary
- Business Impact