RILA: banks announced they will move to chip and PIN cards while ABA lobbyist says PIN is not going to be adopted in U.S.

Arlington , VA, 2015-10-27 — /EPR Retail News/ — Earlier this month, lobbyists from the American Bankers Association (ABA) loudly asserted that an FBI consumer alert urging consumers to use PINs with newly issued EMV or “chip” credit cards was misguided, because banks in the United States were not issuing chip and PIN credit cards. A lead lobbyist for the ABA said flatly, “PIN is not going to be adopted in the U.S.” (Matt Hamblen, “FBI Takes Down Alert On Chip Credit Cards After Bankers Complain,” Computerworld 10/9/15)

First, we know this is not true. Smaller banks have in fact already announced that they will move to chip and PIN to better secure transactions and their customers. First Niagara Financial group made such a public announcement recently. (Robin Sidel, “Bank Bets Americans Can Remember Another PIN,” Wall Street Journal 10/1/15)

Target, one of the nation’s largest retailers, has also announced that its RedCard MasterCard will now be a chip and PIN card. (Matthew J. Schwartz, “Target Rolls Out Chip & PIN Cards,” Bank Info Security 10/14/15)

And now, JPMorgan Chase, one of the largest issuers of credit cards in the United States, has told a customer that Chase was indeed planning to add PINs to credit cards.

Chase Support Chip and PIN

So who is telling the truth?

If the lobbying association representing the country’s largest banks did indeed tell the FBI that no banks are issuing PINs in the United States, how does that square with what one of the largest credit card issuers in the nation is telling its customers?

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Jason Brewer
Senior Vice President, Communications and Advocacy
Phone: 703-600-2050
Email: jason.brewer@rila.org

RILA: Retailers spent billions upgrading to accept new “chip-and-PIN” cards, but banks keep on issuing “chip and signature” cards in US

Arlington, VA, 2015-8-31 — /EPR Retail News/ — In a segment on this morning’s Today Show, a spokeswoman from MasterCard led viewers to believe that new “chip” credit cards being issued to consumers are the same cards currently issued in Europe and Canada that have reduced fraud by almost 80 percent. What this spokeswoman omitted, is that the cards that have cut fraud across the globe are Chip and PIN credit cards. In the United States, banks are skipping the PIN and relying on signatures, which do not provide the added layer of security for cardholders that exists in other countries.

Retailers have spent billions upgrading their point-of-sale terminals to accept new “chip-and-PIN” cards, but banks are only taking a half-step by issuing “chip and signature” cards that are still more fraud-prone than the cards they issue everywhere else in the industrialized world.

MasterCard also insinuated that all customers will have new cards in their wallet on October 1. But an independent survey released by the AP found that only 1 in 10 consumers have been issued a new card.

Watch this segment from this morning’s Today Show.

Banks and card networks have some explaining to do:

1)      Why aren’t new chip cards being issued with an accompanying PIN if it’s the smartest and safest technology available?

2)      Why, if Chip and PIN has been successful across the globe in reducing fraud, would we implement a less secure standard for American cardholders?

3)      Why are banks and card networks willing to make the added investment in security in other countries but not here in the United States?

Banks and card networks continue to gloss over the fact that the cards they are issuing in the United States are inferior to the same products they offer in the rest of the industrialized world. It’s time for them to honestly answer these questions.

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.

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Jason Brewer
Senior Vice President, Communications & Advocacy
Phone: 703-600-2050
Email: jason.brewer@rila.org