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Bloomberg reports that Visa Inc. has "revised rules for merchants using its new chip technology for debit-card transactions after some retailers claimed the requirements inhibited competition." According to the story, "Merchants won’t be required to ask the cardholder to choose which network processes the debit transaction, Visa said Tuesday in a statement. Stores can also continue to prompt cardholders to enter a personal identification number, or PIN, on in-person transactions."

The story says that "retailers have complained that the fees they’re charged for debit payments have climbed in the aftermath of the US transition to chip-embedded, or EMV, cards. Unlike magnetic-strip cards, whose codes can be copied and stored by hackers for later use, EMV technology generates distinct codes for each transaction."

The changes reflect "'new guidance recently issued from the Federal Reserve and address a Federal Trade Commission inquiry,' Visa said in the statement."

Leslie Sarasin, president/CEO of the Food Marketing Institute (FMI), issued a statement in response to the changes, saying that "FMI is pleased to see Visa change its rules on the confusing EMV debit screens at checkout," but added, "While Visa’s actions to change its rules to comply with the law are a significant step in the right direction, it will take some time for grocers who have the confusing screens to replace them. Therefore, FMI requests that Visa prevent additional exposure to liability while merchants revise their systems to ensure customers have the safest, most secure and most efficient transactions."
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