Wal-Mart Sues Visa for Resisting Use of PIN-Based Transactions
Wal-Mart Stores Inc. filed a lawsuit against Visa Inc., saying the payments network operator was resisting the use of personal identification numbers (PINs) by customers for purchases made on debit cards at its stores.
Wal-Mart and other U.S. retailers have pushed their payment partners to allow customers to use PINs instead of old-school signatures in a bid to prevent counterfeit card fraud.
However, banks and payment network operators are favoring the use of chip cards verified by signatures and see no need to invest further in the more expensive PIN technology.
Wal-Mart also said it pays Visa more for signature-based transactions rather than those made using PINs, according to the lawsuit.
"Walmart believes Visa's position creates unacceptable risk to customers and its actions and rules are inconsistent with federal law," Wal-Mart spokesman Randy Hargrove said in a statement.
Visa declined to comment.
(Reporting by Abhijith Ganapavaram in Bengaluru and Nathan Layne in Chicago; Editing by Anil D'Silva)
Entrepreneur Editors' Picks
How an Encounter With the 'Armpit of Destiny' Helped the Founder of Grubhub Take His Business From His Apartment to a $2 Billion IPO
You Can Train Your Brain to React to Stressful Situations Better. Here's the 3-Step Process.
A Disastrous Valentine's Day Inspired This Founder to Launch Her Own Floral Brand. It Became a Celebrity Magnet With Retail Revenue Up 450% Since 2019.
What Is Your Dream Job? Ask Yourself These 4 Questions to Find Out.
This Is the Crazy Process This Juice Franchise Went Through to Get USDA-Certified Organic. But It Sure Has Paid Off.
No One Would Rent Me a Café in Trendy NYC Neighborhoods, So I Tried Something Risky. Now I Have 3 Coffee Shops.