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RILA urges chip and PIN


The upcoming Oct. 1 deadline for retailers to accept EMV-compliant, chip-based payment cards or face increased fraud liability mandates that retailers read card information stored in chips. However, the mandate does not specify whether the card be further verified by a PIN number or customer signature, and the Retail Industry Leaders Association (RILA) has a clear preference.

American banks and credit unions are predominantly issuing cards that only require a customer signature, rather than an accompanying PIN number, to verify the transaction. In Canada, Europe and the rest of the industrialized world, chip and PIN is the norm.

“Retailers are making a multi-billion dollar investment to protect customers and reduce credit card fraud,” said Brian Dodge, executive VP of RILA. “Unfortunately, retailers are only one-half of the equation, and at present, banks and credit unions are not meeting the retail investment with the same commitment to consumer protection.”

RILA argues that 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 has been proven to combat fraud dramatically,” said Dodge. “But that’s not what American consumers are getting, and thus far banks have gone to great lengths to blur the lines between the two distinctly different transactions.”

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