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NRF: Chip-and-PIN card adoption a must

  • Reps from the National Retail Federation testified in front of a Congressional panel today on the issue of customer data security.
  • The organization supports moving away from fraud-prone credit cards to PIN cards that include a microchip.
  • Despite some overheard costs to make the broad transition, the NRF thinks the retail industry will benefit as costs tied to fraud are reduced. Just ask Target (TGT +0.5%).
  • Payment giants MasterCard (MA +2.1%) and Visa (V +2%) support the adoption of chip-and-PIN cards, while the banking industry has been less supportive.
Comments (10)
  • arizona11
    , contributor
    Comments (3) | Send Message
     
    Really surprised that USA is so far behind Europe. Here in the UK we only use Chip and PIN and have for years. In the US staff don't even bother checking signatures i.e. no security checks at all.
    16 Apr, 12:41 PM Reply Like
  • Marek
    , contributor
    Comments (603) | Send Message
     
    Should be no surprise, it is very American (USA). That's because users and consumers do not understand, and banks and card issuers are disinclined to highlight, that the risks are all foisted silently on the consumer as price increases and insurance increases for sustained damages, i.e., identity theft, losses. If the consumer catches something in an overage or phony charge, the bank pays the consumer back for part of it, otherwise it is silently implied that it's the customer's problem, and the customer meekly and sheepily goes on his merry sheep-shorn way. Now the media play, unusually extended in this period of economic weakness, has had the fortune of bringing attention to the attention-deficient public enough to lead it to respond by backing off sales and utilization. THAT is a shift of risk to the issuers and retailers...now with religious zeal see a few start a public conversation. Money talks...once it gets involved.

     

    Just as it is very "American" and thus should be no real surprise that Africa and Europe and Asia are all leagues ahead of the USA consumer in LTE and smart phone service...while the USA still is largely dependent upon 3-gen phone and data service. At least socialists are consumer friendly, while capitalists regard consumers much as they do cattle and sheep. Yes, the consumer is the golden goose that feeds us all, but that simply means that you should not eat that goose all at once.
    16 Apr, 02:49 PM Reply Like
  • Eric Landis
    , contributor
    Comments (696) | Send Message
     
    NXPI will be a big beneficiary.

     

    http://bit.ly/1kyMKwL
    16 Apr, 12:43 PM Reply Like
  • Xwatch
    , contributor
    Comments (2) | Send Message
     
    US banks are actively resisting. Many now claim they have Chip & PIN when it's really Chip & Signature - with a PIN to use at ATMs only. It's a misdirection, calculated to throw people off the scent.
    16 Apr, 01:09 PM Reply Like
  • BlueOkie
    , contributor
    Comments (4428) | Send Message
     
    Target wanted to do this for several years now. But it is a all in proposition
    16 Apr, 01:26 PM Reply Like
  • toxophun
    , contributor
    Comments (4) | Send Message
     
    Would someone explain to me why the banks are resistant to Chip & Pin? The issue must be cost otherwise it makes no sense to me. After all, they are the ones who cover any losses to the end user due to fraud or identity theft so, by extension, they are the ones to benefit.
    16 Apr, 02:57 PM Reply Like
  • kirkf
    , contributor
    Comments (29) | Send Message
     
    In Canada we have used chip and pin for several years now.
    I'm surprised that the USA hasn't already moved into this technology.
    I would have expected the major credit card issuers to have adopted their use to minimize losses due to fraud.
    16 Apr, 05:47 PM Reply Like
  • soze
    , contributor
    Comments (3) | Send Message
     
    Banks resist because the cost of fraud is less than the cost of rolling out new card readers at thousands of stores. Simple economics.
    18 Apr, 10:38 AM Reply Like
  • soze
    , contributor
    Comments (3) | Send Message
     
    Add in the cost of replacing all the credit and debit cards at $5 each
    18 Apr, 10:49 AM Reply Like
  • toxophun
    , contributor
    Comments (4) | Send Message
     
    Of course soze; that aspect never occurred to me
    25 May, 05:59 AM Reply Like
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