Chase: The pen is mightier than the PIN

Huffington Post:

JPMorgan Chase is telling checking account holders that when they buy stuff with a debit card, they should complete the transaction with a signature instead of by punching in their PIN.

A Chase letter to cardholders strongly suggests they "always select 'credit'" when making a debit purchase, according to the American Banker. "It's not a credit card, so the money still comes out of your checking account," the letter says. "But by choosing 'credit,' you won't have to enter your PIN in public."
"We know it's confusing," the letter adds.

It's an appeal to safety. Problem is, security experts and consumer advocates are unanimous that debit card purchases are safer with a PIN than with a signature.

"Signature transactions pose greater threats of fraud because the bank's promises of zero liability are only promises, not the law," wrote Ed Mierzwinski of the U.S. Public Interest Research Group in an email to HuffPost. "Besides, if you are a victim of fraud, even if the bank eventually pays you back, remember that's your money missing from your checking account and causing hassles like other bounced checks until the bank puts puts your money back in. And, all consumers pay more at the store and more at the pump because the fees banks extract from merchants are higher for signature debit than PIN debit."