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:

Zondervan hosts dinner for NIV’s 50th

News image

Zondervan, Biblica and the Committee on Bible Translation welcomed more...

READ MORE

Munce partners with SuzyQ to host writers conference

News image

The Munce Group and SuzyQ have announced a new writers...

READ MORE

Fire destroys Los Angeles Christian store

News image

A Christian retail store was gutted by fire Friday evening,...

READ MORE

Family Christian partners to assist widows for Thanksgiving

News image

Family Christian Stores has announced its partnership with author Miriam...

READ MORE

LifeWay to stay closed Thanksgiving

News image

While the "war on Christmas" generates more headlines, Thanksgiving has...

READ MORE

Britt Beemer: Retailers ‘control their own destinies’

News image

The mood of the American consumer is surprisingly gloomy, according...

READ MORE

GMA Canada presents Covenant Awards

News image

The Gospel Music Association (GMA) Canada honored singer-songwriter Dan Bremnes...

READ MORE

Holley Gerth’s ‘Amazing’ becomes best-seller

News image

Holley Gerth’s You’re Already Amazing (Revell/Baker Publishing Group) has landed...

READ MORE

Hachette to set e-book prices under new Amazon deal

News image

Hachette Book Group and Amazon announced Thursday that the companies...

READ MORE

Nazarene Publishing House restructures

News image

Nazarene Publishing House (NPH) will not close for business, but...

READ MORE

Harlequin ends Heartsong Presents fiction line

News image

Harlequin is ending the Heartsong Presents line it acquired in...

READ MORE

Christian retailers to participate in Small Business Saturday

News image

Nov. 29 is “Small Business Saturday,” a promotion that urges...

READ MORE
100%
-
+
0
Show options

a