RILA issued the following statement in response to comments from Senator Mark Warner endorsing enhanced card security known as Chip and PIN. The comments were made at the Senate Banking Committee hearing this afternoon.
“Retailers applaud Senator Warner’s comments endorsing enhanced card security and welcome the opportunity to collaborate with banks and card networks to move quickly to implement it. The adoption of Chip and PIN would be an important step forward in reducing card fraud in the United States. Banks require that cardholders enter a PIN number to withdraw money from an ATM; merchants should have the same opportunity to protect against fraud. For years, U.S. retailers have urged card issuers and card networks to migrate to universal PIN security and chip-based smart card technology, the same enhanced fraud prevention technology used throughout the rest of the world,” said Bill Hughes, vice president of government affairs at RILA.
Chip and PIN technology is more secure than the magnetic stripe technology used today in the United States and the technology has helped to drive down fraud in countries where it has been adopted. Currently, Chip and PIN cards are being used throughout the world yet Visa and MasterCard are scheduled to roll out Chip cards in the United States in October 2015 without the crucial functionality of PIN. Merchants are willing to make shared investments for enhanced security and we want to work together with our partnering card issuers and card networks to implement this technology in a way that is most secure for our joint customers’ data.
RILA recently launched its Cybersecurity and Data Privacy Initiative which urges collaboration among all stakeholders and focuses on four major steps we should take to improve the security of debit and credit cards, including requiring that every credit and debit card be issued with a corresponding PIN number and establishing a roadmap to migrate to Chip and PIN technology.