US: Home Depot files Antitrust suit against Visa and MasterCard

Home Depot filed a federal lawsuit that claims credit card companies are not properly protecting retailers and consumers from potential fraud.

The Atlanta-based retailer alleges MasterCard and Visa have forced consumers to use credit cards that aren’t secure enough to prevent theft.

These so-called “smart cards” come with computer chips that hold account information.

Home Depot said the credit card vendors’ transactions would be safer if verified with a PIN number instead of a signature.

“They’re frustrated that instead of getting as much security as they can, they’re getting a half-measure,” said Matt Schulz, an analyst with creditcards.com.

Home Depot and other companies also say they are seeing expenses rise.

“It’s ridiculous that merchants are footing most of the bill for this costly conversion and the networks and the issuers can’t even take the step to protect the merchants and the consumers at the point of sale with PINs,” said Mark Horwedel, the chief executive of the Merchant Advisory Group, which represents dozens of retailers, including Home Depot.

Full Content: The Wall Street Journal

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