How to survive in a cashless society
March 2007
After March 17 2007, Ireland moved one step closer to a cashless society. From that date onwards, you cannot sign for purchases, and will have to use a PIN code to pay with a card.
Follow our ten tips for surviving in a cashless society.
1. Protect your PIN
From March 17 your PIN - the four digit code for your card - is as good as a signature. So never ever disclose your PIN to anyone.
No one - not even your bank manager - has the right to ask for it. PINs are never used over the phone or the Internet, so if someone asks for it, discontinue the transaction.
Don't make the mistake of keeping it with your card - if your PIN gets stolen, you'll have no protection. If you have difficulty remembering it, change it at an ATM machine to a number you will remember - a friend's birthday or an important date. Don't use your own birth date though.
2 Know your responsibilities
Although the advent of chip-and-PIN is set to reduce fraud radically, the big downside is that in future banks may be less likely to compensate someone who has been defrauded.
Under the new system, once you use your PIN to verify a transaction, many banks will regard this as proof that you authorised the transaction.
In other words, if someone steals your card and obtains your PIN, your bank may maintain that you authorised the subsequent transactions, and the liability may fall back on you.
3 Stand up for your rights
Legal experts say a change in processes alone cannot change liability. The law states that the person whose fault it is that fraud has occurred is responsible.
So if you have taken due precautions with your PIN and have still been the victim of fraud, you have a strong argument in your favour. The difference now is that you may have to prove you took all those precautions.
So what if somebody finds out your PIN by surveillance and then swipes your card? Ultimately, the courts may have to decide on that particular issue.
4 Ask for help
If you don't know your PIN, or have forgotten it, contact your bank or card company and request a PIN reminder.
5 Don't panic
You have three chances to get your PIN right. If you still can't remember it, your card will be locked. Contact your bank or retrieve your PIN and unlock it at an ATM machine.
6 Prepare for the demise of the cheque
If you don't already do so, start paying your bills electronically, because cheques are set to become a thing of the past.
The European Central Bank wants a single electronics payments system in place across 29 countries by 2010. As part of this process, it has the elimination of the cheque firmly in its sights. Ireland is the second most enthusiastic user of cheques in the eurozone, so for thousands of consumers there will be a big adjustment ahead.
7 Be wary of direct debits
Insist on a standing order payment option wherever possible - not a direct debit.
A standing order is used to send a fixed amount of money to another account, such as a savings account or a mortgage, at regular intervals.
Direct debits are usually used to pay bills where the amount you pay and the due date changes on a regular basis.
8 Always read your bank and credit card statements
If you notice anything unusual, report it immediately.
9 Arm yourself against unwanted marketing
The cashless society is good news for marketeers - every time you use a card to pay for something, you leave behind a potentially valuable trail of marketing data.
But you don't have to become deluged with unwanted marketing material:
- Contact the Irish Direct Marketing Association (IDMA) and ask to be removed from its members' databases
- Opt out of the electoral register for marketing purposes.
- Tell your telephone line provider if you don't want to receive cold calls - it has a statutory obligation to opt your out of the National Directory Database (NDD)
10 Get texting
The next big way that we will be able to make payments is by the mobile phone. Some experts reckon that the new system could overtake the credit card within 10 years as the payment method of choice.
So if you're not comfortable using your phone to send messages, get practising and stay ahead of the game.
Learn more
Read our tips on how to stop unwanted sales calls
Check advice on remembering your pin
Read about how to opt out of the electoral register for marketing purposes