Retail group says FBI backs PIN use in chip-based cards

Reuters News
Posted: Oct 09, 2015 12:57 PM

(Reuters) - The National Retail Federation (NRF) said on Friday the Federal Bureau of Investigation's warning on the new chip-based credit cards being vulnerable to fraud backed its stand on the need for a personal identification number instead of a signature.

The FBI said on Thursday the chip-based cards can be counterfeited using stolen card data, and that the chip will likely not stop stolen or counterfeit credit cards from being used for online or telephone purchases. (

Virtually all of the chip cards being issued in the United States are chip-and-signature rather than chip-and-PIN, the industry group said on Friday. (

About 40 percent of payment card terminals at U.S. merchants, a category that includes retailers, taxi drivers and doctors, had been upgraded by Oct. 1 to meet the deadline set by credit card companies to install chip-card readers or face increased fraud liability.

The NRF said it submitted testimony to a congressional committee on Wednesday arguing in favor of PIN over signature.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sriraj Kalluvila)