Banks must quit magnetic-stripe cards by Feb

Staff Correspondent | Published: 00:00, Nov 27,2018


Bangladesh Bank on Monday sets fresh deadline for all banks to give up the use of magnetic stripe in credit and debit cards to secure clients’ card-based transactions through ATMs and POS terminals from data skimmers.
As per the BB set fresh deadline, none of the banks would be eligible to issue such magnetic stripe credit or debit cards after December 31 this year.
Central bank issued the deadline as it found that some of the banks were yet to complete the procedure of transferring magnetic stripe-based cards to chip‑ and PIN-based cards within June 30, 2018 deadline.
The BB’s latest circular asked the banks to complete the transformation procedure from magnetic card to chip‑ and PIN-based cards within February 28, 2019 and to inform BB’s payment system department accordingly.
The skimmers set data scanning devices on ATM booths of three banks — Eastern Bank Ltd, United Commercial Bank Ltd and The City Bank Ltd — to steal money from the clients by cloning the card data, prompting the central bank issue guidelines in 2017.
In August, 2017, BB issued an integrated order on ICT security for banks and non-bank financial institutions for ensuring security and minimising risks in card-based transactions.
The BB guidelines asked banks and NBFIs to use the National Payment Switch Bangladesh for conducting all card-based domestic inter-banks transactions.
It also asked the banks and NBFIs to introduce personal identification number-based transactions through cards within December, 2017 but later extended the time until June 30, 2018.
Banks were also asked to inform clients instantly about any transactions through SMS alert service.
Card-based transactions of the banks must be certified by the Payment Card Industry-Data Security Standard (PCI-DSS) by December, 2018, the BB guidelines said.

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