Card Purchases Above $50 Will Need PIN Verification in Costa Rica
A security standard for debit and credit card transactions in many European countries has been introduced in Costa Rica. It is also common in Australia and New Zealand, and, according to the Central Bank of Costa Rica, its use will be widespread around the world in the next few years.
Since May 1st, 2022, merchants can ask customers to type their PIN for purchases over 30.000 colones, which is a little less than $50 at the current exchange rate. This “transition period,” as the Central Bank of Costa Rica calls it, will end on February 1st, 2023, when the PIN should be asked for everywhere in purchases that exceed the mentioned amount.
The Central Bank explained that “the purpose of this measure is to provide greater security to customers to avoid fraud that occurs in the event of the loss or theft of this payment instrument.” This system will replace the current one, where purchases over 30.000 colones need the seller to ask for a signature and the ID of the customer to verify that it is their card they are using.
“The typing of the PIN in the dataphones responds to a good international practice, which will gradually be imposed in all the countries of the world,” declared the Central Bank. “In addition, international experts recommend its use over the handwritten signature on the voucher. (…) Gradually its use will spread to more and more countries,” the entity added.
All businesses should place their card payment terminals within reach of the customers since no cardholder will be required to hand over their card or to give their PIN when making a payment. There will be no need for vouchers for purchases over 30.000 colones either.
All the cards issued in Costa Rica from July 1st, 2022, will be contactless, so this applies to purchases made with that instrument or with cards with chips.
What happens if a card issued overseas doesn’t have the PIN?
Some expats living in or planning to live in Costa Rica have asked us about what happens if the debit or credit card they use doesn’t have the PIN, even if they ask their bank for it. We asked the Central Bank of Costa Rica about the manner and they told us that if a card issued overseas doesn’t have the PIN, the customer will abide by another authorization method that their bank allows.
“In the specific case of payments from foreign customers, it is the foreign card issuer who determines how the customer must be authenticated against these payments, either by manually signing the voucher, for which the member must request a valid identification document; by entering the PIN on the dataphone; or any other mechanism,” the Central Bank said.
The bank added: “The dataphone must be programmed to indicate to the affiliate and client the step that must be carried out. Therefore, if the foreign customer uses a card that does not have the PIN function enabled, they must continue to sign the voucher, as they currently do, and they do not need to carry out any formalities with the issuer to use the payment device within the national territory.”
Delays and details
This measure was supposed to be implemented this past February, but because of the rise in Covid-19 cases caused by the omicron variant, the Central Bank of Costa Rica postponed it to May 1st, when a nine-month “transition period” will begin after which it will be obligatory for all businesses to ask for the PIN in orders above said amount.
Every credit or debit card issued in Costa Rica after July 1st, 2022, will have the ability to request the PIN for purchases in stores. If a card issued before that date doesn’t have a PIN, bank entities are obliged to assign a code cost-free.
If card users need to change their PIN, they can do it also cost-free in ATMs, banks, or online. Clients can customize their PIN numbers so they can remember them better. Banks will also inform users that are given new cards about the need to type their PIN for these purchases.
According to the Central Bank of Costa Rica, in-store card payments of more than 30.000 colones currently represent “barely 10%” of all card transactions in the country.
Tips for using the PIN
Choose your PIN well
The first time you receive a PIN it will be four random numbers provided by your bank. You can immediately change it in the bank, in the ATM, or in the entity’s website. Choose a number that’s easy to remember for you, but one that’s not so easy to guess by anyone else.
Be careful while typing it
The same as when you’re using an ATM, you should just “shield” your PIN. Type it in a way that only you can see, so that no one steals your card and has easy access to its funds. Remember that merchants are required to place the dataphone closer to you. Needless to say, don’t give your PIN to anyone.
Keep calm
As mentioned above, if your bank hasn’t handed you a PIN for your card, you will be asked to sign the voucher for purchases over 30.000 colones, as has been before the introduction of the PIN security standard. Also, remember that Costa Rica is in a transition period to make PIN the default security standard for these purchases, so you might not even have to think about this until 2023.
