Nine State Attorneys General Push for PIN Technology

A small group of state attorneys general sent a letter to the executives of major card companies on Monday urging them to implement chip-and-PIN technology in credit and debit cards, arguing that it would offer greater protection from fraud.

However, the letter — signed by nine AGs — acknowledges that a PIN-based system could not have prevented all recent data breaches. Significantly, it also stopped short of suggesting that chip and PIN technology should be mandated by law. “Indeed, we are sensitive to the concern that locking into the law any particular card security technology may pose risks to future innovation and/or give rise to incompatible technical requirements in different jurisdictions,” the AGs said.

That comment echoes a key message of ABA’s “Let’s Innovate Not Mandate” campaign, which has focused on educating policymakers and correcting retailer misinformation about chip-and-pin mandates.

“Securing transactions goes beyond any one static measure, which is why we favor a comprehensive, dynamic approach to stopping fraud. This approach starts with chip cards, which will stop 90 percent of in-person card fraud,” said ABA EVP James Chessen. “Retailers need to build upon that strong security foundation by installing and activating their card readers before the holiday season.”