USA: Walmart sues Visa over chip cards

Walmart Stores Inc has filed a lawsuit against Visa claiming the payment network is preventing it from requiring users to enter a personal identification numbers (PIN) when paying with chip cards, reported Bloomberg.

In the lawsuit, filed with New York State Supreme Court on Tuesday, Walmart said that Visa was forcing shoppers to use a signature with the chip-based cards, which the retailing giant considers “fraud-prone.”

"This suit is about protecting our customers' bank accounts when they use their debit cards at Wal-Mart. We have long advocated for 'PIN verification' as opposed to the less secure signature verification for debit transactions," a Wal-Mart spokesman told The Associated Press.

The legal conflict between the two companies illustrates the tension between retailers and payment companies over security and technology.