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The lawsuit explains it, I never bought the "Americans are too dumb to remember a PIN" excuse, and it turns out that it's about the money -- PIN transactions co
by Johnny555 10y ago
The lawsuit explains it, I never bought the "Americans are too dumb to remember a PIN" excuse, and it turns out that it's about the money -- PIN transactions cost less than signature transactions so Visa/MC want more signature transactions:
The banks collect higher merchant fees for signature-based credit-card transactions than PIN-based ones.
“While chip-and-PIN authentication is proven to be more secure, it is less profitable for Visa, MasterCard, and their member banks and it provides a greater threat to their market dominance,” the lawsuit claimed.
- tedmiston 10y agoU.S. chip cards ≠ chip and PIN. For the majority of them, we aren't issued pins and it's not even an option.
- Slump 10y agoThis is closer to the core issue in my opinion. Wal-Mart and Home Depot do not want to support processing EMV Debit cards as credit. Most debit processing rails require PIN data to process the transaction. Running a debit card using the signature CVM means processing the transaction over credit networks which costs the retailer more and is more profitable for the issuers. This is the main reason retailers want to use Chip and PIN all the time and drop signature. It would mean they could simply run debit transactions over debit rails all the time which would cost them less. Obviously the issuers want the opposite since processing over debit rails is less profitable for them.