News

Malaysia says ATM cards will be chip-based by Oct 1

September 15, 2003

KUALA LUMPUR, Malaysia - The Malaysian Electronic Payment System network (MEPS) says that all ATMs will accept only chip-based cards from Oct 1, according to a report in The Star.

MEPS' original deadline for converting magnetic-stripe ATM cards to chip was June 30. However, it was extended to give all customers time to get the new cards, according to an earlier report in the Star. (See related story Malaysia extends deadline for converting ATM cards to chip)

MEPS launched a chip-based Bankcard last February, and Malaysian financial institutions have been converting their cards and ATMs to chip since then. (See related stories More than 95% of Malaysia's ATMs are ready for chip and Malaysian bank to spend $10M on ATM upgrade to accept chip cards)

Malaysia decided to convert cards from magnetic stripe to chip because of widespread problems with card skimming. (See related stories Malaysian thieves siphon money from accounts, Card fraud grows in Malaysia, Malaysian authorities warn banks about ATM fraud and Malaysian Finance Minister says switch to chip will reduce ATM fraud)

MEPS managing director Datuk Mohd Hata Robani said the Bankcard will not only provide enhanced security but also offer cardholders the convenience of making other electronic payments through its e-Debit and MEPS CASH applications. (See related story Malaysia hopes to drive more debit with chip cards)

It is estimated that about 9 million of Malaysia's 11 million cards will be converted to the new chip-based Bankcard by the end of September, according to the latest Star report.