Who is liable when the customer forgets their PIN?
When the card is inserted into the chip reader, the terminal will prompt for the Cardmember to enter a PIN if one is stored on the card. If the Cardmember claims not to know it, you can attempt to override this using your terminals PIN Bypass or signature acceptance function. If the terminal shows that the Card Issuer allows PIN Bypass, the Cardmember may sign for it. In these cases, the Card Issuer will still cover the liability if the transaction turns out to be fraudulent, provided that you have followed the correct authorisation and signature checking procedures. If the terminal tells you that PIN Bypass has not been accepted and that the transaction has been declined, you must not allow the Cardmember to sign for it. If you do, you will be liable if the transaction turns out to be fraudulent.