In the wake of massive data breaches affecting major retailers, the move to credit cards with chips using so-called EMV technology is underway, but according to The Washington Post, unlike Europe, many EMV-enabled cards in the U.S. are chip-and-signature cards instead of the more secure chip-and-PIN cards. A representative from Visa said the majority of card issuers in the U.S. are opting for the more familiar signature verification step for now “to keep the consumer experience as consistent as possible.” However, the use of signature over PIN is frustrating a number of retailers and other merchants. The National Retail Federation’s Mallory Duncan said, “It means that merchants will be spending billions of dollars and see they get very little benefit from this investment.” Significantly, a new Ponemon study reveals that a majority in the payment ecosystem don’t believe the switch to chip-and-PIN will improve consumer data security.
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