This first transaction brings Canada closer to being in line with Asian and European countries with chip and pin protection for debit and credit transactions.  [hat tip to Payments news]

Interac Association – Media > Press Releases

Toronto, Ontario, September 12, 2007– As part of its commitment to providing the safest and most secure payment network, Interac Association today announced the completion of Canada’s first INTERAC debit card transaction at the point-of-sale terminal using chip technology. The transaction was processed today by TD Merchant Services using a BMO Bank of Montreal chip debit card at Mercato Giovanni’s Fresh Food located in downtown Toronto. The chip debit card transaction was conducted in preparation for the Kitchener-Waterloo, Ontario market trial of chip technology which will begin in fall 2007.