Due to the epidemic, in the case of contactless card purchases, the government has raised the limit relating to the mandatory use of PIN numbers from HUF 5,000 to HUF 15,000. According to preliminary estimates, almost 90 per cent of all transactions could be carried out without customers’ hands coming into contact with the POS terminal. This measure, too, serves to slow down the epidemic as it reduces the need for customers using bank cards to come into physical contact with the terminal – touched by many other customers – for the purpose of typing in their PIN numbers.

The Government of Hungary is continuously monitoring the economic situation caused by the coronavirus epidemic, is carefully considering proposals, is consulting with market players and is taking the necessary measures. Increasing significantly the percentage of cash-free transactions and minimising physical contact during payment are also part of the fight against the virus.

To this end, with regard to the state of danger, the government is raising the limit of payments known ordinarily as pay-pass payments from HUF 5,000 to HUF 15,000. With this measure, according to expectations, almost 90 per cent of purchases, in total some 670 million transactions could be made contactless, meaning that these transactions could be carried out without physical contact with the POS terminal.

The amendment of the legislation gives banks and card companies a short period for preparation. The new limit will enter into force from 15 April 2020.

Regardless of the situation caused by the epidemic, financial security is also a priority, and the general security rule that, at times, cardholders are required to type in their PIN numbers even upon contactless purchases will remain in effect. This is to ensure that stolen cards cannot be used indefinitely without restriction. Therefore, after 5 contactless purchases, from the 6th transaction onward the POS terminal will ask for the PIN number regardless of the limit, or if the value of purchases made without the use of a PIN number has reached the equivalent of EUR 150.

Payment with smart phones or smart watches could be a good solution for hygienic reasons, in the interest of the containment of the epidemic as in the case of such devices the system does not at all ask for a PIN number, and there is no need to physically come into contact with the terminal.

(Ministry of Finance)