JustRewards wrote:I too think this is a fluke, as US-issued chip enabled credit cards should never prompt for a PIN. I imagine it was something wrong with the POS terminal or the checkout clerk pressed a wrong button. Also, I don't think the relative lack of response means the forum isn't popular but some threads get more interest than others. Some topics seem to get tons of response, like the ones about myfico and gardening, but all forums tend to get more viewers than active posters. I haven't been on here very long but I've gotten some good answers to my questions so far.
What do you mean they should never prompt for a PIN? It's up to the bank to determine if use of a PIN is required over a signature, it doesn't matter if it's a credit or a debit card and the priority is coded within the card's chip and/or stripe. A credit card can certainly have a PIN, it just means the transaction generates less revenue in terms of insert fees because the transaction carries less risk involved when it comes to potential fraud.
Just because we live in the United States doesn't mean we're not allowed to have credit cards with PIN. As a matter of fact, that's the way they should be, but I'm sure banks will find ways to reduce costs if they were ever mandated to go to PIN only... You'd lose your rewards and have to pay higher fees, or the bank/issuer could charge you a small fee to use your card (like $0.05 per transaction) or something.
The typical interlink debit card fee is 0.09% + $0.15 per transaction... I'm sure credit card would have similar fees if they were PIN only rather than 3%-3.5% of the total price of the transaction. If you purchase a $70 pair of shoes, a debit PIN transaction will cost the merchant $0.06+$0.15 = $0.21; whereas a credit card with signature will cost the merchant $2.45.