The Retail Industry Leaders Association (RILA) says when it comes to the EMV migration banks and credit unions are not meeting the retail investment with the same commitment to consumer protection.
The RILA says retailers are spending billions of dollars putting in place new payment terminals that are certified for chip card acceptance. This will ensure they are not held liable for counterfeit fraud usage when new cards make their way to the marketplace, and will ensure a more secure transaction for consumers compared to current technology.
While retailers turn on new payment machines, there is one security feature missing from the new cards being issued by American banks and credit unions”an accompanying PIN number. Unlike the credit cards issued in Canada, Europe and the rest of the industrialized world, U.S. consumers are being issued “chip-and-signature” cards rather than “chip-and-PIN” cards. The PIN adds an extra layer of security, and makes it even more difficult”if not impossible”for cybercriminals to replicate counterfeit cards.
Chip-and-PIN cards are already in wide use around the world and have significantly reduced fraud. For example, in the United Kingdom “chip-and-PIN” cards have reduced fraud by 67%.
U.S. banks and credit unions have argued that the chip is enough, and will prevent counterfeit credit cards from being made. However, cyber-thieves have already begun to find ways to work around the chip, making the PIN a vital component of a more secure payment ecosystem.
In an effort to make sure consumers have the most modern means to protect themselves against fraud, retailers are urging banks and credit unions to ditch the signature and adopt the PIN.
RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.
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