Card scheme operators Visa and MasterCard aim to phase out signatures as a means of customer verification in Australia by the end of June next year. Visa Australia and MasterCard Asia-Pacific have written to the Australian Competition and Consumer Commission outlining their plan and seeking authorisation under the cartel provisions of the Competition and Consumer Act.Under the terms of the proposed plan, called PIN@POS in the ACCC submission, the scheme operators will amend their regulations so that from March 17 next year merchant terminals will be required to enforce PINs on eligible transactions. In other words, if a transaction requires a PIN the terminal will not process the transaction without a PIN.From June 30, signatures will no longer be accepted. The new rule will not apply when a magnetic stripe is used to activate the transaction; it will only apply when a chip is used.Visa and MasterCard estimate that about 45 per cent of card-holders do not use PINs when they make payments.Visa had planned to phase out signatures in April this year but was forced to delay the change. The submission explains that financial institutions thought the time-frame was too short (somewhat surprisingly, given that Visa first announced its policy in 2009).The financial institutions were also concerned that MasterCard had not given a date for its move to phase out signatures. Scheme members said there would be unnecessary duplication and confusion if the two schemes did not act together.Visa said the biggest benefit of the move would be to improve card security. It said card fraud was rising in Australia and one of the problems is that sales staff at many stores do not check signatures.The independent merchant acquirer Tyro said in a statement yesterday that it supported the co-ordinated implementation of PIN@POS, describing it as "expedient".