However, signature-only transactions are tied to higher fraud losses. In fact, according to the survey, signature transactions accounted for $1.13 billion of fraud losses in the U.S. in 2011, while PIN accounted for $204 million.
Despite these statistics, a number of U.S. issuers plan to offer signature-only EMV cards. The two major networks are on opposite sides of the debate. Visa contends that chip-and-signature allows merchants to adopt EMV technology more quickly, and eliminates the cost of PIN readers. Conversely, MasterCard points out chip-and-PIN's impressive fraud-prevention record.
As the nation’s financial institutions begin to migrate their own portfolios from mag-stripe to chip cards, the signature/PIN decision is a very big one. While each will have to evaluate the costs and benefits of the various formats, PIN continues to reign supreme in the eyes of many industry experts (SHAZAM included). If your financial institution would like to learn more, certainly get in touch.