There are many benefits to “chip-and-PIN” technology, but the most significant benefit is that this technology has shown its fraud-fighting prowess around the world and in nearly every G-20 nation. Now, even the National Bank in Kenya is implementing chip-and-PIN technology while banks and credit unions in the United States issue chip and signature cards because of the expense and “effort” that chip-and-PIN technology would require:
American Express’ Anre Williams: PINs Are Not Worth “Cost And Complexity” & Take Too Much “Effort.” “Anre Williams, president of global merchants services at American Express, cited cost and complexity as reasons for not issuing PIN numbers, which would require a much larger investment by card issuers.‘It is the PIN management system that takes the effort,’ Williams said, in part because of the additional customer support it requires.” (Nandita Bose, “Costly Shift To New Credit Cards Won’t Fix Security Issues,” Reuters, 3/5/15)
Europe, Australia, Canada and now African countries have made the investment in more secure cards to protect their consumers. What are American banks and credit unions waiting for?
“Retailers are spending billions to upgrade terminals and employ various encryption tools to deter foreign hackers and cyber thieves, but retailers are only one part of the payment ecosystem,” said Brian Dodge, executive vice president at the Retail Industry Leaders Association. “While most of the rest of the world has adopted Chip and PIN card security, U.S. banks, credit unions and card networks refuse do the same. Until the financial services industry provides American cardholders with security technology equal to or better than the rest of the world cybercriminals will continue to focus on American consumers and businesses.”
RILA is the trade association of the world's largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.