Last updated on August 16th, 2012 at 12:04 pm
As the U.S. migrates to Chip card technology for payments, it will be imperative that card issuers enable a PIN (personal identification number) for their cards to prevent fraud.
Liz Garner, director of government relations for the Food Marketing Institute (FMI), noted, “With recent announcements by the card networks, and more anticipated this spring, it is evident that Chip cards are coming to the United States. Any investment in Chip card technology that doesn’t require issuers to enable a PIN option on their cards would be of great concern to our industry.”
The grocery industry accounts for 39 percent of PIN debit volume in the United States, according to FMI research. Food retailers have consistently argued that the PIN number is crucial to validating a customer’s identity in the checkout lane.
FMI is supporting the efforts of the Merchant Advisory Group (MAG) to bring together all stakeholders in the payments chain to create a single, safe and secure payment standard that would be good for both U.S. businesses and cardholders.
“The grocery industry is an extremely important stakeholder in the retail payments chain, and it is imperative we have a seat at the table, along with other merchants, when the U.S. standards and timelines for Chip cards are being developed,” Garner said. “Since a grocery store may have five or 10 or 20 different checkout lanes to serve its customers, when the payments rules and infrastructure in this country change, it can become a significant investment for businesses of all sizes.”
In support of the new MAG roadmap, Garner said, “The payment standards and processes in the U.S. must lead us to a reasonable, safe, and secure platform.”
For more information on the payments roadmap, visit the Merchant Advisory Group website, www.merchantadvisorygroup.org.