Association of Lithuanian Banks: magnetic stripe cards are replaced with microchip payment cards but the latter remain valid


Association of Lithuanian Banks (ALB) recalls that since 1 January 2011 all the settlement operations executed with microchip cards have to be confirmed with PIN code. ALB also emphasizes that all the magnetic stripe cards available on the market must be serviced till the last day of their validity period. 

The operations executed with magnetic stripe cards have to be confirmed either with PIN code or cardholder’s signature subject to the equipment implemented in the place of settlement.

Magnetic stripe cards issued by the Europe banks, other world banks and almost all the USA banks according to the requirements of “Visa” and “MasterCard”, will be valid for some years. It will be still possible settling with these cards not only in Lithuania but also worldwide.

In addition to this, according to the requirement which will come into force from 1 January 2011 all the equipment for servicing cards have to read the data of microchip cards.

“However, this does not mean that magnetic stripe cards cease to be valid. All the equipment should be adapted for servicing two types of cards and we also hope that traders will not forget that magnetic stripe cards is the same settlement instrument as the microchip cards. The customers of the Lithuanian banks will possess this type of cards in a less amount but the tourists from other countries can possess magnetic stripe cards for several years, therefore, points of sale should possess multifunctional systems”, said Stasys Kropas, the president of the Association of Lithuanian Banks.

The Association of Lithuanian Banks hopes that during the period of equipment renovation the companies providing the opportunity for cardholders to settle with payment cards will introduce and instruct the personnel servicing clients how to use the newly implemented equipment for servicing payment cards in order the residents would not incur inconvenience and could settle with magnetic stripe cards as well as microchip cards.

Information of Association of Lithuanian Banks