Walmart, Home Depot suing Visa, MasterCard over not allowing use of chip+PIN

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in legal on (#1J34H)
story imageHome Depot filed an antitrust lawsuit in federal court this week against credit card giants Visa and MasterCard for blocking the adoption of chip-and-PIN on credit card transactions. Instead, the companies adopted the less secure chip-and-signature method, which does not prevent lost and stolen cards from being used. Merchant groups, consumer advocacy groups and even the Federal Bureau of Investigation (FBI) called attention to the need to adopt chip-and-PIN in order to take full advantage of EMV security. According to data compiled by the U.S. Federal Reserve, transactions routed over Visa's or MasterCard's signature debit networks cost retailers more than twice as much as transactions routed over PIN networks.

Home Depot's case against Visa and MasterCard is similar to one Walmart recently filed against Visa. In that case, Walmart says that Visa is precluding the retailer from requiring PINs on all debit card transactions. As a result, Walmart is forced to pay the fees associated with signature-based networks. For the world's largest retailer, that figure is in the billions.

Visa and MasterCard, along with groups such as the American Bankers Association, have said that requiring PINs with credit card transactions could cause confusion for consumers. Visa has also said that newer, better authentication technologies (such as biometric and geo-location verification) are just over the horizon.

Confusion? (Score: 1)

by seriously@pipedot.org on 2016-06-23 07:41 (#1J3NF)

requiring PINs with credit card transactions could cause confusion for consumers
We've been using credit cards with PINs in EU for at least 10 years (country-dependent, some countries have been a bit slower) and I don't remember anyone being confused about it. What kind of confusion are they talking about? Maybe mixing up the various PINs we use (phone, debit card, eID, etc.)? or some other kind of confusion?
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