Advertise with fastmoving.co.za
 
 

Walmart sues Visa over chip cards in US
Walmart sues Visa over chip cards in US

Walmart sues Visa over chip cards in US

INTERNATIONAL NEWS

Fin24 - May 12th 2016, 14:37

New York - US retail giant Walmart is suing Visa to give customers using chip-enabled debit cards in its US stores the right to punch in a PIN code. 

Walmart Stores said Visa's opposition to allowing PIN use in the chip cards, which immediately debit the amount from the linked bank account, creates an unacceptable risk to customers' bank accounts.

Currently, customers sign a receipt for their debit-card transaction, as they do with magnetic-stripe cards that are swiped.

Walmart filed its complaint against Visa in a New York state court on Tuesday, according to court documents reviewed by AFP.

In its complaint, Walmart said Visa refuses to allow the use of PIN codes and imposes a signature as verification on debit as well as credit cards, which involve a delayed transaction.

"We believe Visa's position creates unacceptable risk to customers and its actions and rules are inconsistent with federal law," the company said in an emailed statement Wednesday to AFP.

It noted that debit cards are the most-used form of payment in its thousands of stores.

"PIN is the only truly secure form of cardholder verification in the marketplace today, and it offers superior security to our customers," said the company, which has sought PIN use from Visa for several months.

"This suit is about protecting our customers' bank accounts when they use their debit cards," the Bentonville, Arkansas-based retailer said.

In the United States, card-transaction terminals recently have begun to accept pin-and-chip cards, which have been used for years in Europe and elsewhere. The switch to the chip-enabled cards was accelerated by massive data thefts from the bank accounts of millions of customers in retailers, such as Target.

"Visa has acknowledged in many other countries that chip and PIN offer greater security," Walmart said.

"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."From Fin24 

Read more about: walmart | visa | usa | new york

Related News

Massmart partners with Walmart’s global sourcing team to help local suppliers export to Walmart markets
10/09/2019 - 09:28
Representatives from Walmart’s Global Sourcing team are in Johannesburg to meet with 18 of Massmart’s South African suppliers who are interested in exploring opportunities to export their products to Walmart markets.

Walmart Q2 revenue grows 1.8% year on year
20/08/2019 - 14:13
Total revenue of Walmart for its second quarter (Q2) of Financial Year 2020 (FY20) ending July 31 hit $130.4 billion, up 1.8 percent year on year, while the net sales of Walmart International decreased 1.1 percent year on year to $29.1 billion, the company reported.

Walmart must hire someone who can stop the bleeding at its online business
15/07/2019 - 09:55
Walmart has a hole to fill at its online unit, and whoever assumes the role faces a big challenge ahead.

Walmart aims to list minority stake in Japan unit Seiyu
01/07/2019 - 14:29
Walmart said it aims to list its Japanese supermarket unit Seiyu while keeping a majority stake in the business, amid on-and-off speculation the US retail giant was looking to exit Japan where it has struggled to grow.

Walmart worries that US tariffs will raise Mexican fresh produce prices
10/06/2019 - 14:40
Walmart CEO Doug McMillon says the retailer is concerned that fresh produce prices would rise if tariffs are placed on imports from Mexico.