Publication Date: November 2019
The U.S. is a “chip and choice market,” with both signature-preferring and PIN-preferring cards and profiles. For PIN-preferring cards, some stakeholders may decide to process transactions without PIN entry, using PIN Entry Bypass or other options described in this white paper.
This U.S. Payments Forum white paper describes PIN Entry Bypass, as defined in Book 4 of the EMV specification. PIN Entry Bypass can be used to allow cardholders to opt out of PIN entry, with a transaction indicator informing the issuer that the PIN was bypassed on a PIN-preferring card. The white paper discusses the transaction flow and the impact on issuers, merchants and cardholders.
The white paper also discussions alternative processes that may be deployed which also allow selection of cardholder verification methods – merchant cardholder verification selection and issuer preference for and cardholder selection of cardholder verification method. Merchant and issuer considerations are described for these alternative approaches.
The November 2019 update of the white paper provides clarification of PIN Entry Bypass implementation for contactless transactions and for CVM processing.
While considerations for all constituents have been outlined in this paper, it is highly recommended that issuers, acquirers and processors seek guidance from the payment networks with whom they connect, and that merchants speak to their merchant service provider before planning implementation.
Please note:The information and materials available on this web page (“Information”) is provided solely for convenience and does not constitute legal or technical advice. All representations or warranties, express or implied, are expressly disclaimed, including without limitation, implied warranties of merchantability or fitness for a particular purpose and all warranties regarding accuracy, completeness, adequacy, results, title and non-infringement. All Information is limited to the scenarios, stakeholders and other matters specified, and should be considered in light of applicable laws, regulations, industry rules and requirements, facts, circ*mstances and other relevant factors. Use of or reliance on the Information is at the user’s sole risk, and users are strongly encouraged to consult with their respective payment networks, acquirers, processors, vendors and appropriately qualified technical and legal experts prior to all implementation decisions.
Please note that, on November 2, 2016, staff of the Board of Governors of the Federal Reserve System (the “Board”) released aFAQrelating to Section 235.7(b) of Federal Reserve Regulation II (promulgated by the Board pursuant to the Durbin Amendment to the Dodd-Frank Act), noting that although the FAQ is not an official Board interpretation, “[a] payment card network inhibits a merchant’s ability to route electronic debit card transactions if it, by network rules, standards, specifications, contractual agreements, or otherwise, requires the merchant to allow the cardholder to make the choice of EMV chip application on a debit card, where one application routes only to a single network.” None of the Information should be interpreted or construed to require or promote the establishment of any solution, practice, configuration, rule, requirement or specification inconsistent with applicable legal requirements, including Federal Reserve Regulation II, any of which may change over time. The U.S. Payments Forum assumes no responsibility to support, maintain or update the Information, regardless of any such change.
FAQs
PIN Entry Bypass can be used to allow cardholders to opt out of PIN entry, with a transaction indicator informing the issuer that the PIN was bypassed on a PIN-preferring card. The white paper discusses the transaction flow and the impact on issuers, merchants and cardholders.
Why don t US credit cards have PINs? ›
In the U.S., however, credit card issuers are reluctant to require their customers to use PINs. The issuers are worried people would find the PINs to be a hassle and would opt to use a competitor's card that didn't require remembering and entering a number.
What is PIN bypass? ›
Skip the PIN and stay secure
Once you insert your card, the card reader will offer you options for entering your PIN. One of those options is typically listed as “Bypass PIN.” Look for this selection at most major retailers. That's it! Your transaction should go through and you'll be asked to remove your card.
Where to use debit card without PIN? ›
In most cases, if you're making a purchase online, you don't have to enter the card's PIN. Instead, you enter the card number, expiration date, and the cardholder's name. In some cases, you may also be prompted to enter the billing address for the card and the three-digit security code on the back of the card.
What transactions don t require a PIN? ›
For most transactions — such as paying your utility bill, purchasing groceries at the market, or shopping at major retailers — a PIN isn't needed. If you're shopping online, you'll enter your card number and card verification value (CVV).
Why is there no chip and pin in the USA? ›
Basically: the form of fraud it protects against is very rare in the US, and consumers find memorizing another number painful. Europe adopted chip+PIN not because anyone really wanted it but because it was mandated by law. It's unclear that it has actually been effective.
Do Amex cards use PINs? ›
Please be aware that all your American Express Cards will need a PIN. We strongly recommend that you choose and remember a different PIN for each Card you have, if possible.
How to use debit card without PIN or OTP? ›
2. Using secure payment gateways: Certain payment gateways, like Google Pay or Visa Safe Click, offer the option of making transactions without requiring an OTP under specific conditions.
How to use credit card without PIN at ATM? ›
How to withdraw money from a credit card without a PIN. Sometimes you can use a pay code-enabled ATM to withdraw money from a credit card without a PIN. If this option is available, you can use your card from your mobile app, prompting a QR code for you to scan at the ATM, allowing you to withdraw cash without a PIN.
Can someone use your credit card without a PIN? ›
Can you use a credit card without a PIN? Using your credit card doesn't usually require you to enter a PIN. Everyday purchases in stores and online usually have several credit card payment options: entering the card information, swiping the magnetic stripe, making a contactless payment and inserting the card's chip.
PIN numbers are not required to use your debit card. You can continue to use the card by signing for purchases. Purchases made using a PIN could be denied if the merchant decides not to allow healthcare purchases on the PIN network. PIN numbers cannot be changed.
Can someone withdraw money without my PIN? ›
To withdraw money from an ATM (automated teller machine) you, usually, need the debit or credit card and the PIN (personal identification number). If you have the bank's app on your smartphone you may be able to request a code that will enable you to withdraw cash from an ATM.
What is a PINless debit card? ›
At the point of sale (POS), a customer simply inserts their debit card into your business's card reader or terminal. As the name 'PINless' suggests, the customer isn't required to enter their personal identification number (PIN) or provide their signature on the sales receipt.
Do U.S. Bank credit cards have PIN numbers? ›
Speak with a representative: If you're not sure what your PIN is, call us at the phone number on the back of your card or at 800-285-8585 and request a PIN mailer to be sent to you. We accept relay calls. Automated phone system: You must have your PIN mailer or the pre-selected PIN to use this option.
Does a US credit card require a PIN? ›
There are very few banks in the US issuing chip & PIN credit cards. Almost all US bank issued credit cards are chip & signature. If a chip & signature card is issued with a PIN, the PIN is only needed for ATM cash withdrawals, something you really would not want to do.
Why my credit card has no PIN? ›
If you don't have a credit card PIN, it may be because you declined setting it up when you opened your credit card account. But depending on your card issuer, you may be able to get one. Finding or requesting a credit card PIN will depend on your credit card issuer.
Do American credit cards have chip-and-pin? ›
While the USA has started to roll out a chip-and-PIN system across the country, it is not yet used by all stores. Most commonly, the insert-and-sign method is used, so you should be prepared to insert your card and then sign the printed slip given to you by the store.
