Blog

Merchants Prefer PINs to Signatures for Chip Cards

May 3, 2012

Representatives from Home Depot and AMC Entertainment have expressed their dissatisfaction with the way in which Visa and MasterCard have approached the rollout of the EMV chip-card standard in the United States.

Representatives from Home Depot and AMC Entertainment have expressed their dissatisfaction with the way in which Visa and MasterCard have approached the rollout of the EMV chip-card standard in the United States.

Speaking at the recent Nacha’s Payments 2012 conference, the representatives said one of their biggest concerns was that there is no agreement on whether PINs or signatures will be used to authenticate chip-card transactions.

Both Home Depot and AMC Entertainment say they oppose the broad adoption of EMV chip cards if PINs are not used. “PIN is obviously the means of true authentication,” says Home Depot’s Malcolm Nunes.

However, many U.S. card issuers have already opted to issue signature-based EMV cards, given the fact that Visa and MasterCard do not require the use of a PIN for transactions involving these cards.

Meanwhile, AMC’s Terry Crawford doubts the United States could be ready for EMV cards by 2015, which is when Visa will begin holding merchants who do not accept the cards liable for fraudulent transactions. Crawford is skeptical that the country could be ready for EMV cards at that time, even if issuers and merchants agree to move forward with efforts to widely adopt EMV, since those timelines have been altered in other countries.

Back To Blog