Chip Debit Card to be on Trial

Chip Debit Card to be on Trial
Kamis, 18 Februari 2010 | 13:38 WIB

JAKARTA, KOMPAS.com — Three national banks, BCA, Permata Bank, and Mandiri Bank, are doing test runs in the first half of 2010 to see if the old magnetic cards can be replaced with the chip technology.

Chief of the accounting and payment system bureau of Bank Indonesia, Aribowo, confirms this test runs, Wednesday, Jakarta. "The three banks volunteered to do the test run phase."

In the second semester, the three banks will do implementation. The debit card with chip technology is expected to cut down the potential for fraud.

Another advantage is that the technology allows interconnection and interoperability, which means that the owner of a chip debit card can transact in all ATMs in Indonesia.

Aribowo stated that for the test run phase three banks are enough. This will help Bank Indonesia in monitoring. "Cocurrently, we will also call all debit card issuers to present the test run results. This might happen around the second week of March."

The conversion cost from magnetic cards to chip cards is estimated to be around Rp. 2 trillion. This cost covers the transition of the 40 million magnetic cards already issued so far, and also to upgrade 30,000 ATMs, and for the 80,000 electronic data capture.

Prior to this, the Bank Indonesia regulation No. 11/11/PBI/2009, regarding payment means by cards, has declared the obligation to use chip technology for any payment by card starting January 1, 2010. (HIN/C17-09)