Originally Posted by
JEFFJAGUAR
But then the question becomes how tightly will visa (and presumably mc and amex) enforce their own regs. After all, as our good friends at Capital One never tire of telling us, all merchants are supposed to honor all valid cards they issue. So when the Dutch National Railroad which I think may be owned by the Dutch government says we are not changing our kiosks, we don't feel safe without some sort of pin verification, just what is visa going to do about it?
One possibility would be for the networks to provide an incentive in the form of lower interchange fees. Perhaps a few basis points discount for modifying their equipment to accept signature. Alternatively, there could be a small penalty each time a valid card is rejected.
If they make it all-or-nothing and say you can't accept our cards unless you follow the rules, some large merchants will walk away. But this isn't an all-or-nothing situation.