What is a chip-and-PIN payment?¶

A chip-and-PIN payment is a card-present event in which the chip was read and a correct PIN was accepted. It proves use of those factors, not the cardholder's identity.

Valid factors can be used by another person¶

The PIN may be shared, observed, stored with the card or known after theft. A genuine card and correct PIN can therefore produce an unauthorised but technically normal transaction.

Records may include terminal and merchant, time, authorisation code, verification and PIN outcome, transaction reference and fallback indicators.

Corroborate the presenter¶

Obtain issuer field definitions, card status, failed attempts, reported loss and related payments. Compare merchant CCTV, receipt, possession, location and communications.

Report that chip and correct PIN were used unless evidence identifies who used them or explains an unusual terminal process.