Editing EFTPOS (section)

===Cardholder verification===
EFTPOS transactions involving a debit, credit or prepaid card are primarily authenticated via the entry of a [[personal identification number]] (PIN) at the [[point of sale]]. Historically, these transactions were authenticated by the merchant using the cardholder's signature, as signed on their receipt. However, merchants had become increasingly lax in enforcing this verification, resulting in an increase in fraud. Australian banks have since deployed chip and PIN technology using the global [[EMV]] card standard; as of 1 August 2014, Australian merchants no longer accept signatures on transactions by domestic customers at point of sale terminals.<ref name="cnet-emvaus">{{cite web|title=PINs now replace signatures on Australian card transactions|url=https://www.cnet.com/au/news/australian-credit-cards-boost-security-as-chip-and-pin-deadline-approaches/|website=CNET|publisher=CBS Interactive|access-date=27 February 2017}}</ref><ref name="zdnet-nomoresig">{{cite web|title=Credit card signatures to be phased out in Australia|url=https://www.zdnet.com/article/credit-card-signatures-to-be-phased-out-in-australia/|website=ZDNet|publisher=CBS Interactive|access-date=27 February 2017}}</ref>

As a further security measure, if a user enters an incorrect PIN three times, the card may be locked out of EFTPOS and require reactivation over the phone or at a bank branch. In the case of an ATM, the card will not be returned, and the cardholder will need to visit the branch to retrieve the card, or request a new card to be issued.

All debit cards now have a [[Magnetic stripe card#Financial cards|magnetic stripe]]{{citation needed|date=June 2012}} on which is encoded the card's service codes, consisting of three-digit values.  These codes are used to convey instructions to merchant terminals on how a card should be processed. The first digit indicates if a card can be used internationally or is valid for domestic use only. It is also used to signal if the card is chip-enabled. The second digit indicates if the transaction must be sent online for authorisation always or if transactions that are below floor limit can take place without authorisation.  The third digit is used to indicate the preferred card verification method (e.g., PIN) and the environment where the card can be used (e.g., at point of sale only). Merchant terminals are required to recognise and act on service codes or send all transactions for online authorisation.<ref>[http://www.visa-asia.com/ap/au/merchants/productstech/visadebit.shtml Visa Australia | Visa Debit] {{Webarchive|url=https://web.archive.org/web/20131206223415/http://www.visa-asia.com/ap/au/merchants/productstech/visadebit.shtml |date=2013-12-06 }}. Visa-asia.com. Retrieved on 2013-09-27.</ref>