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Chip and PIN, research for Visa UK
Research published in February 2006 for VISA UK showed significant
cost-reductions gained by large and small retailers from the use
of Chip and PIN. The study (The Retailer Experience of Chip
and PIN ) carried out by the Centre for Retail Research was
based on findings from 600 retailers with combined turnovers of
£89 billion (38.2% of total retail sales).
Our Report found that retailers using Chip and PIN achieved total
reductions during the 12 months to February 2006 of:
- Card fraud down by £48.8 million (fall of 38.2%)
- Faster transaction speeds saved £24 million
- Customers were more willing to use cards than before, achieving
cost savings for retailers in supervision, till use and back-office
systems of £58.7 million.
- Fewer till rolls saved retailers (and the environment) £13.4
million pa.
Retailers using Chip and PIN also found that customers increased
their spending on cards, providing shops with a net gain in sales
of £221 million on an annual basis.
The Visa study
A random sample of 600 retailers took part in the study.
There were 100 large retailers, 200 medium-sized retailers and 300
small retailers.
The total turnover of all companies surveyed was £89.78 billion,
which is 38.2% of all sales through UK shops. Thus this survey is
able to draw significant conclusions about the impact of chip and
PIN upon the retail sector. The retailers surveyed operated a combined
total of 17,923 stores and employed 568,469 staff.
Other significant findings
- Retailers found Chip and PIN easier to use (81.0% of the sample)
than the previous system.
- More than 90% of customers were confident about Chip and PIN.
- Smaller retailers found that Chip and PIN made their POS seem
'more modern', particularly as many large stores have been relatively
slow to equip all their stores.
- 96% of Chip and PIN users recommended the system to retail non-users.
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