The Retail Industry Leaders Association (RILA) today commends Governor Terry McAuliffe for taking a first step in the Commonwealth of Virginia by signing Executive Directive 5, which puts in place important security measures ensuring state-issued credit cards are protected with chip card technology. But the measure needs to go one step farther in order for Virginia to truly safeguard state-issued credit cards.
Virginia's Executive Directive comes on the heels of President Obama's Executive Order, named the BuySecure Initiative, which implements "chip-and-PIN" card use throughout the federal government. "Chip and PIN" functions similarly to cards used by consumers for many years at ATM machines. They provide the next level of consumer and payment security, and they have dramatically reduced fraud rates in other countries.
While Governor McAuliffe's state-wide executive action is a great and necessary first step, RILA urges the Governor to follow the example of President Obama and require not just chip cards, but "chip-and-PIN" technology as well. "Chip-and-PIN" technology has been the standard in Europe and Canada for many years, causing hackers and cyber-criminals to target American businesses and consumers who carry less-secure magnetic swipe cards. Retailers believe that U.S. banks should issue new credit cards with the same security features that have been tested and proven to alleviate fraud across the world.
"We applaud the initial step taken by Governor McAuliffe in the implementation of chip technology which provides a more secure means to store personal data. But we urge the Governor to follow the President's lead and take the next step and require state-issued credit cards be secured with 'chip-and-PIN' technology. In combining both the chip and personal identification number features, Virginia can take the lead in combatting fraud and protecting taxpayers with a payment system that has proven to work around the globe," said Joe Rinzel, Senior Vice President for Government Relations.
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.