11 December 2017
visit www.solutions.lexisnexis.com

Visa sues Walmart over Chip and PIN policy

30 June 2016  |  7110 views  |  0 signature

The strained relationship between Visa and Walmart is reaching breaking point as the card scheme files a lawsuit against the supermarket chain for allegedly reneging on an agreement to allow the use of signature verification alongside Chip and PIN for transactions at the till.

In its suit, Visa claims that Walmart has secretly been testing a protocol that eliminates the need for signature verifications for transactions paid for with a Visa debit card.

The card scheme says it only became aware of the issue following a drop in debit card transactions at Walmart stores amid complaints from cardholders that they were unable to use their cards to make payments at the check out.

In May, Walmart filed a legal challenge over Visa's failure to mandate the use of Chip and PIN payments, contesting that the continued use of signatures at the checkout creates an "unacceptable risk" to customers.

This was followed in June by a decision by Walmart to refuse to accept Visa credit cards in its 370 stores across Canada. In announcing its decision, the store claims that its Canadian arm pays over $100 million in credit card fees each year.

At the heart of the issue is Visa's continued control of the transaction during a signature checkout. PIN transactions, in contrast, can be routed through cheaper third party networks.

Walmart has since been followed into the courts by rival supermarket chain Kroger and big box retailer Home Depot who have also taken legal advice over the issue.

In a statement, Walmart spokesman Randy Hargrove says: "We have rightfully insisted on the use of PINs for debit card transactions in our stores, while Visa has continued to demand the more fraud-prone signature verification which is more profitable to them."
KeywordsEFTPOSLEGAL

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Home Depot suit accuses card schemes of putting profits ahead of security in EMV roll out

Home Depot suit accuses card schemes of putting profits ahead of security in EMV roll out

16 June 2016  |  8427 views  |  6 comments | 9 tweets | 5 linkedin
Walmart Canada to refuse Visa credit cards as interchange row heats up

Walmart Canada to refuse Visa credit cards as interchange row heats up

13 June 2016  |  9262 views  |  2 comments | 9 tweets | 12 linkedin
Wal-Mart sues Visa over failure to mandate Chip and PIN

Wal-Mart sues Visa over failure to mandate Chip and PIN

11 May 2016  |  7603 views  |  2 comments | 17 tweets | 13 linkedin
Walmart launches mobile payments service

Walmart launches mobile payments service

10 December 2015  |  8262 views  |  4 comments | 17 tweets | 16 linkedin
Visa sues Wal-Mart as interchange fight escalates

Visa sues Wal-Mart as interchange fight escalates

14 June 2013  |  7558 views  |  3 comments | 6 tweets | 7 linkedin
Wal-Mart executive calls for US move to Chip and PIN

Wal-Mart executive calls for US move to Chip and PIN

25 May 2010  |  18906 views  |  3 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.aciworldwide.comvisit www.atos.netvisit www.solutions.lexisnexis.com

Top topics

Most viewed Most shared
Revolut lets customers buy Bitcoin, Litecoin and EthereumRevolut lets customers buy Bitcoin, Liteco...
18103 views comments | 26 tweets | 22 linkedin
Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crashSaxo Bank's 'Outrageous Prediction': Bitco...
11027 views comments | 7 tweets | 6 linkedin
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
6634 views comments | 13 tweets | 20 linkedin
Santander UK poaches Barclays innovation chief Michael HarteSantander UK poaches Barclays innovation c...
6412 views comments | 8 tweets | 17 linkedin
Barclays, First Direct and Nationwide join FCA sandbox cohortBarclays, First Direct and Nationwide join...
5820 views comments | 5 tweets | 12 linkedin

Featured job

Competitive
Germany, Austria or Switzerland

Find your next job