According to CNBC, Walmart is suing Visa because the credit card company has not allowed customers making chip debit card transactions to enter a PIN at the cash register. Instead, customers are required to sign, which is more of a security risk for obvious reasons.
In a statement Tuesday, Walmart said the following:
"PIN is the only truly secure form of cardholder verification in the marketplace today, and it offers superior security to our customers. Customers understand PIN verification because it’s required to access their funds at ATM machines.
"And VISA has acknowledged in many other countries that Chip and PIN offer greater security. VISA nevertheless has demanded that we allow fraud-prone signature verification for debit transactions in our U.S. stores because VISA stands to make more money processing those transactions."
The money Visa stands to gain from Walmart is 5 cents per signature transaction, which definitely adds up.
According to CNNMoney, Walmart says its data shows 91 percent of fraudulent debit card transactions are done with signatures and that 70 percent of all purchases at the store are done with debit cards.