Walmart filed a lawsuit agains Visa in the New York court because Visa wouldnt allow Walmart to just use the chip-and-PIN protocol and required to allow customers to sign when using a chip debit card, cnbc.com reports.
PIN is the only truly secure form of cardholder verification in the marketplace today, and it offers superior security to our customers, Walmart said in a statement. The company added that its customers understand PIN verification because its required to access their funds at ATM machines.
And VISA has acknowledged in many other countries that chip-and-PIN offer greater security. VISA nevertheless has demanded that we allow fraud-prone signature verification for debit transactions in our US stores because VISA stands to make more money processing those transactions, Walmart said.
The retailer considered that Visas position creates unacceptable risk to customers and its actions and rules are inconsistent with federal law.
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