Wal-Mart Stores Inc. filed a lawsuit against for allegedly using the lesssecure signature verification for debitcard transactions and routing such transactions across its own debit networkto make money.
In a lawsuit filed May 10 in the Supreme Court of New York, Wal-Martsaid the "chip-and-PIN"protocol it used for chip-enabled debit card transactions was more secure and lessprone to fraud than signature verification. The protocol also enables the retailerto route transactions across PIN debit networks rather than signature debit networks.
Visa used signature verification for certain debit card transactions.In the case of Visa-branded debit cards, such verification would route debit cardtransactions across Visa's own debit network rather than the network chosen by Wal-Mart,for which the retailer would have to pay higher fees.
Visa took steps to make its signature network the exclusive signaturenetwork on its cards, Wal-Mart alleged in the lawsuit.
Wal-Mart is demanding a jury trial in the matter. Visa did notreply to an email requesting comment.
In 2014,Wal-Mart sued Visa overalleged manipulation of transaction fees with banks.