The National Retail Federation (NRF), a US-based retail trade association, has welcomed the move by JPMorgan Chase to issue Europay MasterCard Visa credit cards as PIN and chip credit cards rather than chip and signature, and urged other US banks to follow it.
Prior to the card data breach at Target, JPMorgan was issuing chip and signature credit cards, but following the incident it chose to switch to chip and PIN.
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NRF president and CEO, Matthew Shay, said use of a PIN is absolutely essential to providing merchants and their customers with the full extent of protection available from chip-based cards.
“The chip authenticates that a card isn’t a counterfeit but it’s the PIN that ensures the card is being used by its actual owner and not a thief scrawling an illegible signature.
“NRF has encouraged uniform use of PIN and Chip for years, and urged Chase in recent meetings to make full use of the double layer of protection these cards offer. The networks and issuing banks should follow their lead and do the same,” Shay added.
The American banks are set to follow their counterparts in Europe by launching EMV chip cards in the next few years.
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By GlobalData
