Wal-Mart is suing Visa over the way it handles chip-equipped debit cards.
Example of chip-equipped debit card from Bank of America
The retail giant filed a lawsuit in New York Supreme Court on Tuesday saying Visa’s methods aren’t secure.
Wal-Mart says Visa allows customers to just use a signature to verify transactions with chip-equipped debit cards.
The company says payments using a PIN are more secure and less expensive for the retailer to conduct.
According to the Wall Street Journal, Wal-Mart pays Visa about five cents more per signature transaction than it does when using a PIN.
Visa has not commented on the matter.
This is not the first time Wal-Mart and Visa have gone head-to-head over payment issues. Most recently, Wal-Mart sued Visa in 2014 over card fees charged to merchants. The companies settled in 2015.
