(unless you yank out the phone line from the card terminal, in which case you'll have to sign the receipt and show ID)
You still need the correct pin code... If not, the card will decline the purchase. Even when the phone line is unplugged...
In norway, at least... That i know for sure...
About security:
I was buying some airsoft equipment from japan, using visa.
The total amount of money was about, 1400 USD...
I got a phone call from VISA Norway asking if the transfer really was legit... That surprised me...