PIN Debate Could Slow Migration to EMV
The debate over chip-and-PIN versus chip-and-signature verification for EMV cards remains unresolved, with Visa favoring the latter for credit card payments while the other networks prefer the former. Visa’s Ellen Richey says it is unwise for the industry to move forward on EMV adoption while also attempting to “change the cardholder verification landscape” by forcing PINs on consumers. She says the industry must ultimately concentrate on card-not-present fraud and tokenization adoption, rather than continuing to debate secondary chip-card authorization. Some experts say Visa’s position is a practical approach for merchants and issuers to rapidly shift to EMV smartcards in the U.S. by the October 2015 fraud liability shift deadline. “The PIN is redundant because the true benefit of EMV is that the card cannot be counterfeited,” says Javelin Strategy & Research analyst Al Pascual. Aite Group analyst Julie Conroy says most issuers are planning to circulate chip-and-signature cards, while Pascual says merchants are pushing for PIN because consumers are concerned about having extra security in the wake of recent retail breaches. MasterCard’s Carolyn Balfany says the industry can expect to see “a variety of strategies continue to be embraced across the market” as verifications are based on the risk case for each transaction.
From “As EMV-Chip Cards Advance, PIN Remains a Sticking Point”
PaymentsSource (02/26/14) Heun, David