Christian Retailing

NEWSLETTERS Current Issue Retail group urges adoption of PIN-based credit cards
Retail group urges adoption of PIN-based credit cards PDF Print E-mail
Written by Christine D. Johnson   
Monday, 31 March 2014 09:46 AM EDT

MalloryDuncan-webThe National Retail Federation (NRF) has urged the U.S. Senate to overhaul the nation’s fraud-prone credit and debit card system, saying banks’ insistence on cards that use a signature instead of a Personal Identification Number (PIN) puts merchants and their customers at risk.

Card companies have continued to promulgate the use of fraud-prone signature cards despite their own research—conducted almost 25 years ago—that showed that PIN-based cards provided more security for consumers, retailers and banks.

“Everything a fraudster needs is right there on the card,” NRF Senior Vice President and General Counsel Mallory Duncan said, describing how the cardholder’s name and account number are clearly printed on each card along with the expiration date and security code. “The bottom line is that cards are poorly designed and fraud-prone products that the system has allowed to continue to proliferate.”

Duncan’s comments came in a statement submitted to the Senate Committee on Commerce, Science and Transportation, which held a hearing last week on criminal cyber attacks in which consumer card numbers have been stolen. He said current magnetic stripe cards with signatures are too easy to duplicate and forge.

With or without an embedded microchip, a PIN-based card would provide greater security for consumers and retailers alike, Duncan said.

“Protecting all cards with a PIN instead of a signature is the single most important fraud protection step that could be taken quickly,” Duncan said. “It’s proven, it’s effective, and it’s relatively easily implementable. PIN debit cards are close to ubiquitous worldwide, and readily producible in the U.S. Chip is a desirable add-on. If speed of implementation is of importance, then substituting PIN for signature is preferable to implementing chip.”

Along with switching to PIN-based cards, NRF supports additional steps aimed at preventing fraud and data breaches, including end-to-end encryption of data, tokenization rather than storing data, and mobile payments.

 

In this current issue:

Enter soon for Christian Retailing’s Best Early Bird discount

News image

Christian Retailing is now accepting nominations for the 2015 Christian...

READ MORE

Latest album gives Casting Crowns fifth RIAA Platinum status

News image

Reunion/Beach Street Records artist Casting Crowns added another Recording Industry...

READ MORE

ECPA president earns distinguished credential

News image

Mark Kuyper, president/CEO of the Evangelical Christian Publishers Association (ECPA),...

READ MORE

K-Love announces 2015 Fan Awards nominees

News image

For KING AND COUNTRY and the Newsboys topped the list...

READ MORE

NRF survey: Valentine’s spending to reach record heights

News image

Cupid has some tricks up his sleeve this year with...

READ MORE

Rosenberg hits best-seller list again with ‘Third Target’

News image

Author Joel C. Rosenberg has done it again. His newest...

READ MORE

Biblica and Zondervan celebrate 50 years of the NIV

News image

January 2015 marks the beginning of a yearlong campaign to...

READ MORE

RBC Ministries rebrands to become Our Daily Bread

News image

Worldwide, Our Daily Bread is recognized as a household phrase....

READ MORE

Rainer title lauded with 2014 award

News image

B&H Publishing Group has announced that Autopsy of a Deceased...

READ MORE

2015 Absolutely Gospel Music Award nominees announced

News image

Joseph Habedank and hit songwriter Kenna West each garnered eight...

READ MORE

Carpentree awarded licensing for 'Old Fashioned'

News image

Carpentree, Inc. is releasing four new canvases that support the...

READ MORE

Carta Jerusalem to partner with Hendrickson Publishers

News image

Carta Jerusalem, the long-established cartographic firm that holds the world’s...

READ MORE
100%
-
+
0
Show options

a