Walmart files lawsuit against Visa over chip-card transactions
Walmart has filed a lawsuit in New York Supreme Court.
Walmart has filed a lawsuit in New York Supreme Court against Visa for forcing the retailer to allow customers to verify chip-enabled debit card transactions with a signature instead of a PIN.
The retailer has accused Visa for promoting a less secure method of payment compared to PIN-based transactions by making it essential for customers to sign when using a chip debit card.
The lawsuit further said that since Visa mandated a signature for debit card payments, which forced Walmart to route those payments through Visa’s network instead of a competitor that might be less expensive.
Walmart spokesperson Randy Hargrove said: “PIN is the only truly secure form of cardholder verification in the marketplace today, and it offers superior security to our customers.
“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.”