It was the first chip and PIN transaction made with a Canadian MasterCard chip card in a real world retail location. The transaction was made with a BMO Mosaik MasterCard at Tresses Spa and Salon on a Moneris point-of-sale (POS) terminal.

The transaction demonstrates the advanced state of readiness for the roll-out of chip cards and devices. As a card issuer, BMO Mosaik MasterCard - the largest MasterCard issuer in Canada - is preparing for the phased introduction of chip cards to its cardholders. Moneris Solutions, Canada's largest processor of credit and debit card transactions, has been providing merchants across the country with chip-compatible point-of-sale systems to accept those cards. MasterCard Canada is working with card issuers, processors and merchants to provide expertise on chip implementation and to ensure the Canadian transition is made in the most efficient, cost-effective fashion.

A major market trial of chip cards will take place in Kitchener-Waterloo, Ontario in a few months time and is a precursor to the national roll-out of chip cards.

"We're looking forward to introducing all our cardholders to their new chip BMO Mosaik MasterCard cards over the next couple of years," said Mike Kitchen, Senior Vice-President, Card and Retail Payment Services for BMO Bank of Montreal. "BMO customers value Mosaik MasterCard because it is a quick, safe and simple way to make purchases from anywhere in the world. By participating in Canada's first MasterCard chip-to-chip credit card payment transaction, we are reinforcing with our customers that BMO remains at the forefront of ensuring that they can make purchases even more safely and securely than ever before."

"Chip cards take payment cards to the next level of technology with greater capacity and enhanced security," explains Kevin Stanton, President, MasterCard Canada. "The impact on consumers' daily experience is minimal - entering a PIN instead of signing a receipt - but the benefit for the security of payments is great. And today we saw another significant milestone achieved with the first MasterCard chip and PIN transaction."

"Moneris is at the forefront of bringing chip to the Canadian market," said Jim Baumgartner, President and CEO Moneris Solutions. "We were among the first acquirers in Canada to be chip-certified by three payment brands and we already have more than 75,000 chip-compatible payment devices in the marketplace. We're leading the roll-out for chip acceptance across Canada."

The new chip cards carry a small computer processor chip with memory, logic and a configuration of software applications, significantly enhancing security. The chip holds information in an encrypted form and requires the use of a PIN (personal identification number) to complete the payment process. Canadian MasterCard cards will also continue to carry magnetic stripes in order to be compatible with non-chip POS terminals.

Credit and debit cards are being upgraded to chip in order to enhance the security of payments and particularly to protect the Canadian market from global fraud migration as chip rolls out in other countries. Already more than 70 per cent of payment cards issued in Europe are chip-enabled.