What is the significance of Black Friday that is approaching soon? It signifies that now there will be millions of purchasers who would be rushing to look out for in-store and online deals on different products. But, if you are one of those shopaholics who are all set to start holiday shopping, there can be a bit of a problem for both customers and the stores. In fact, one of the Wal-Mart Stores, Inc.(NYSE:WMT) executives indicated that there can be utter disorder or chaos while shopping in the Black Friday season.
What the Walmart executive said
According to a report published by Re/code, it was on Monday that John Drechny, who is the payment executive at Walmart said so in Las Vegas while he was attending the “Money 20/20 Payments Conference”. John was obviously making a reference to the deadline till October for all merchants to use equipment that is equipped to handle both new as well as old debit and credit cards. He also referred to a more secure and new chip and PIN card that are already available with many customers.
Drechny said that anarchy is being forced on the payments front while saying that he is anticipating that this holiday season will face checkout problems. Both customers, as well as, personnel in the retail sector need to get well-acquainted with this new payment system soon. While this system is in place for several years in various other markets, U.S. is yet to implement it thoroughly. The new system requires that the customers should enter a PIN for their card while they buy something and require specially designated payment terminals.
Introduction of credit card security in the U.S.
But what triggered this big change in the United States? The issue of credit card security cropped up during the Black Friday season of 2013. This was the time when a crucial data breach was suffered by Target. Hackers stole millions of credit card that were of old-style. These cards could be easily replicated and used in the market. The new payment system makes use of chip and PIN cards that cannot be cloned with equal ease in the same manner as there are embedded chips within them.
Finally, card issuers have started distributing secure cards to their customers this year. The retailers in the country had been given a deadline for 1st October to buy the special gadget that has an ability to read those cards. According to the executive from Walmart, the deadline given may not be that user-friendly as the use new technology will lead to longer waiting time at checkout.
The user may select to pay using their mobile devices and smartphones provided their retailers have equipment supporting wireless payments.