Source: EURLEX
Language: en
Format: md

[**Avis juridique important**](../../../editorial/legal_notice.htm)

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# 92002E1733

**WRITTEN QUESTION E-1733/02 by Brice Hortefeux (PPE-DE) to the Commission. Greater security over bankcard payments.** 
  
*Official Journal 092 E , 17/04/2003 P. 0086 - 0087*

  

WRITTEN QUESTION E-1733/02

by Brice Hortefeux (PPE-DE) to the Commission

(17 June 2002)

Subject: Greater security over bankcard payments

Despite the constant efforts of banking establishments, bankcard fraud is still on the increase.

At the same time, the number of cardholders increased by 6 % in 2001. It therefore comes as no surprise that over ten years the number of card transactions has almost doubled, reaching a figure of 4,8 billion by 2001.

The system of electronic payment terminals for bankcard transactions in shops uses an advanced technology which reads the microchip data in each card. Cash machines also rely on the microchips in bankcards for security checking the card pin code. However, not all the cards issued by banks in the various Member States bear a microchip

Given the above, and the upsurge in this type of fraud, will the European Commission ensure greater standardisation of bankcard security mechanisms, which would allow European citizens to use this increasingly popular payment method in total security?

Answer given by Mr Bolkestein on behalf of the Commission

(26 July 2002)

The Commission is aware of the increase of bank card fraud and agrees with the Honourable Member that it is essential to introduce chip cards in all Member States in order to reduce counterfeit fraud. In fact, at the moment the main source of payment fraud in the Community is counterfeit cards, accounting for approximately 30 % of the losses. The payment card schemes and the banks are committed to introduce chip cards in all Member States by 2005. The deadline is due to the huge number of cards to be re-issued and of the equipment (terminals, automated teller machines, etc) to be replaced or modified.

To prevent fraud and counterfeiting of non-cash payments, the Commission adopted in February 2001 a three-year Fraud Prevention Action Plan(1). Security improvements are the main priority of the Action Plan, which supports the introduction of the highest economically viable level of security.

The Commission will organise in 2003 a Conference on the security of payments in the Internal Market, with a view to improve information on the security of modern payment products and systems. Discussions on the progress in the migration to chip cards in the Union take place regularly at the meetings of the EU Fraud Prevention Experts Group, the steering group for the implementation of the Fraud Prevention Action Plan.

The E-europe Smart Card Action Plan also provides for initiatives aimed at promoting the use of chip cards for payment applications, which also cover standardisation issues.

(1) Communication from the Commission Preventing fraud and counterfeiting of non-cash means of payment, COM(2001) 11 final.

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