Walmart Suing Visa Over Debit Card Policy [VIDEO]
You have a fancy new debit card with a chip. But is it actually safer than your old debit card with a magnetic strip? Walmart says no, and is suing Visa over its debit card rules, saying that requiring signatures rather than PINs leads to more fraud.
Debit cards which contain chips were introduced as a way of thwarting fraud, but Walmart contends that 91% of fraudulent purchase are made with signatures.
The lawsuit also claims that Visa's policy to require signatures rather than PINs during the checkout process also costs retailers and consumers more.
"PIN verification is much more secure than signature verification," said the lawsuit, filed in New York state court. "It also enables Walmart to route transactions across PIN debit networks rather than signature debit networks, which saves Walmart (and its customers) money."