The National Retail Federation has banded together with retailers to urge the implementation of more secure consumer-payment options—particularly, the replacement of current credit and debit cards with cards that would store data in an embedded computer microchip and require the use of a PIN rather than a signature.
Recently, the NRF sent a letter to congressional leaders outlining the retail industry’s commitment to protecting sensitive consumer data in the wake of the recent international cyber attacks and thefts.
It reiterated the retail industry’s long-held support for replacing current payment cards with more advanced technology. Current cards use easy-to-hack 1960s technology.
“The National Retail Federation and our 12,000 members are committed to combating this criminal threat to our industry and our customers, and we strongly recommend the adoption of meaningful steps to fight cyber theft and credit card fraud,” NRF president and CEO Matthew Shay wrote in the letter sent to Senate Majority Leader Harry Reid, D-Nevada, and House Speaker John Boehner, R-Ohio.
“For years, banks have continued to issue fraud-prone magnetic stripe cards to U.S. customers, putting sensitive financial information at risk while simultaneously touting the security benefits of next-generation PIN and chip card technology for customers in Europe and dozens of other markets,” Shay said.
“The retail industry is eager to work with banks and card companies to fight cyber attacks and reduce fraud,” Shay stated. “These efforts include installation of sophisticated new PIN-enabled point-of-sale systems and readiness to adopt cards with more secure microchip technology, but the fact remains that retailers cannot do this alone.”
The NRF expressed its support for an immediate transition from magnetic-stripe cards to more secure and advanced PIN and chip cards to better protect consumer data from theft, hacking and skimming. PIN and chip cards are widely used in more than 80 countries throughout Europe, Asia and Africa.
[Image courtesy of the National Retail Federation]