The campaign by retailers to prod the card networks and banks to move to total Chip & PIN in the U.S. and away from Chip & SIG is gaining more traction. A group of nine attorneys general dispatched a letter to the nation’s top credit card companies and banks.
The request was made in a letter sent today by the attorneys general of Connecticut, Illinois, Maine, Massachusetts, New York, Rhode Island, Vermont, Washington state and the District of Columbia to the chief executives of Visa, MasterCard, American Express, Discover, Bank of America, Capital One Finance Group, Citigroup and J.P. Morgan Chase.
The National Retail Federation welcomed the letter.
Last month, the Federal Bureau of Investigations issued a warning that said PINs were more secure than signatures, then revised the statement after receiving objections from the banking industry. Last year, President Obama issued an executive order requiring PINs on credit cards issued to government workers.
Chip-and-PIN is used in approximately 80 countries from Asia to Europe, outside the U.S.
. The NRF says while chips make the new cards more difficult to counterfeit than traditional magnetic stripe cards, the chip can be circumvented, and the chips do nothing to protect lost and stolen cards from being used. A PIN could prevent fraud with lost, stolen or counterfeit cards even without a chip.
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