OPERATIONS

NRF urges PIN-based credit adoption to Senate

BY Dan Berthiaume

Washington, D.C. — The National Retail Federation (NRF) told the Senate on March 26 that it’s time for an overhaul of the nation’s credit- and debit-card system, saying banks’ insistence on cards that use a signature instead of a Personal Identification Number (PIN) puts merchants and their customers at risk.

“Everything a fraudster needs is right there on the card,” VP and general counsel Mallory Duncan said, describing how the cardholder’s name and account number are clearly printed on each card along with the expiration date and security code. “The bottom line is that cards are poorly designed and fraud-prone products that the system has allowed to continue to proliferate.”

Duncan comments came in a statement submitted to the Senate Committee on Commerce, Science and Transportation, which held a hearing on criminal cyber attacks in which consumer card numbers have been stolen. He said current magnetic stripe cards with signatures are too easy to duplicate and forge.

“There are technologies available that could reduce fraud,” Duncan said. “An overhaul of the fraud-prone cards that are currently used in the U.S. market is long overdue.”

NRF has long-advocated for replacing current cards where consumers sign to approve a transaction with next-generation cards that would require use of a PIN. With or without an embedded microchip, a PIN-based card would provide greater security for consumers and retailers alike, Duncan said.

“Protecting all cards with a PIN instead of a signature is the single most important fraud protection step that could be taken quickly,” Duncan said. “It’s proven, it’s effective, and it’s relatively easily implementable. PIN debit cards are close to ubiquitous worldwide, and readily producible in the U.S. Chip is a desirable add-on. If speed of implementation is of importance, then substituting PIN for signature is preferable to implementing chip.”

Along with switching to more-secure, PIN-based cards, NRF supports additional steps aimed at preventing fraud and data breaches, including end-to-end encryption of data, tokenization rather than storing data, and mobile payments.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
OPERATIONS

Senators criticize Target for breach

BY Dan Berthiaume

Minneapolis – Senators John D. Rockefeller (D. – W.V.) and Richard Blumenthal (D. – Conn.) publicly criticized Target’s handling of its 2013 data breach during testimony by Target CFO John J. Mulligan in front of the Senate Commerce Committee, which Rockefeller chairs. The senators said that Target’s management did not pay attention to signals from its security software and that it is time for the retail industry to make changes.

Mulligan said Target supports uniform standards to govern responses to data breaches and said his company is enhancing user authentication for its computer systems, as well as placing more restrictions on access to its network.

“We know this has shaken (Target customers’) confidence, and we intend to earn it back,” said Mulligan. “Like you, we are asking hard questions about whether we could have taken different actions before the breach was discovered that would have resulted in different outcomes.”

keyboard_arrow_downCOMMENTS

Leave a Reply

P.Siegel says:
Mar-28-2014 12:23 pm

Criticism of Target
Two of the largest retailers, WalMart and Target, actually have distain for their customers, I believe. They act as though customers are a pain in the --- and feel they would be much better off not having to deal with them. It's why in both cases their so called "customer service policies" STINK.

P.Siegel says:
Mar-28-2014 12:23 pm

Two of the largest retailers, WalMart and Target, actually have distain for their customers, I believe. They act as though customers are a pain in the --- and feel they would be much better off not having to deal with them. It's why in both cases their so called "customer service policies" STINK.

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
FINANCE

Consumer spending helps drive GDP growth

BY Dan Berthiaume

Washington, D.C. – Consumer spending growth of 3.3% in the fourth quarter of 2013 helped drive a 2.6% increase in the U.S. gross domestic product (GDP). According to the third and final estimate from the Commerce Department, the price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.5% in the fourth quarter.

The 2.6% estimate is up from the second estimate of 2.4% released by the Commerce Department in February 2014, although slightly below a consensus Bloomberg estimate of 2.7% compiled from 79 economists. In the third quarter of 2013, GDP grew 4.1% and consumer spending increased 2%.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...