Americans wont use Smart chip on creditcards

[Pinwheel (Doug)]

I found this rather amusing Americans invent the smart-chips & RFID but won't use it. More to the point don't trust it, mean while MR Crook is having a wonderful time making copy Credit cards with the swipe magnetic stripe because it's 30 year old technology and you can buy the gear to do it on eBay for $50. There losing billions of greenbacks & the banks won't implement it, because it will cost money even though it's now the world standard......

[gary]

Hi Doug,

There is nothing "smart" about the smart-chips in credit cards.

If you show someone both sides of a credit card for 15 seconds without them
even physically touching it, they can easily debit it to its full limit.

Best Regards

Gary

[mithrandir (Andrew)]

Originally Posted by gary

Hi Doug,

There is nothing "smart" about the smart-chips in credit cards.

If you show someone both sides of a credit card for 15 seconds without them even physically touching it, they can easily debit it to its full limit.

True Gary, chip/pin doesn't solve card-not-present fraud. It does largely stop card-present fraud.
How are all the traveling yanks with their no-chip cards going to cope when countries stop accepting signature, as Australia is supposed to be doing this year. I've already seen them having problems in Europe.

[Baddad (Marty)]

Oh Yes,
The smart card details can be scanned and copied while the card is "safely" in a purse, wallet or pocket.
Technology, and know how reveals the PIN.
Bad Bad Bad
I understand why the Yank... er Americans are reluctant to promote the concept.
Cheers

[gary]

Originally Posted by Baddad

Oh Yes,
The smart card details can be scanned and copied while the card is "safely" in a purse, wallet or pocket.
Technology, and know how reveals the PIN.
Bad Bad Bad
Cheers

Hi Marty,

I am afraid it is even simpler that. No Mission Impossible scanning technology required.

All that is required is the credit card number and expiry date.
And a good memory or ideally a pen and paper to copy them down.

Given the cards are only valid for a few years at a time and given there are only
twelve months in a year, if you are willing to try up to about 36 month/year
combinations, the credit card number will suffice.

As you are aware, when you purchase over the telephone or online, no
physical presentation of your card is required. In most instances, not even
the CVV. Not even the name on the card is required either.

Now even if you were to never show your credit card to anyone, it could still
be debited without your knowledge. The algorithm for generating valid
credit card numbers is widely published and all that is then left is the challenge of
finding the month and year it expires by trial and error.

For credit cards to have any chance of having better security, they would require
something analogous to their own miniature display and keypad.
You would enter your own PIN into the card's own keypad, which you would never
reveal to a third party, and the card would display a PIN-of-the-moment for a few
seconds which you would then enter into the merchant's terminal.

Similar to the dongles used by online banking. Alternatively a smartphone
could be employed to do something similar.

Best Regards

Gary

[OICURMT]

It's not that American's won't use them, it's the fact that the cost of implementing such a large number of chip readers in the USA is not NPV positve on a risked basis. As for trusting them, they have the same rate of fraud as the *modern* encrypted magentic strip.

I use Citibank Virtual Card numbers for online transactions. I log into my account, setup a VCC for one transaction and the amount I'm charging and presto, can use it for a one time only purchase. I'm really surprised that Australian CC's don't use it, but hey, nothing like losing money to hide your profits... lol

For store purchases, I use whatever is available... I have a credit card that is limited to $1000 total and use that for any store purchases. I can *instantly* pay for the running sum (or part thereof), thus allowing multiple purchases to occur beyond the $1000 limit.

OIC!

[michaellxv (Michael)]

It's amazing that the whole system hasn't collapsed yet when you look at all the problems.

But then the previous system of walking around with wads of cash had it's own problems and had reached it's use by date.

[Barrykgerdes]

I prefer to sign for everything but does not worry me all that much. I use a credit card for everything. The convenience far exceeds the risk. I did once have my card maxed out by fraud in Singapore but the Bank fixed it up in two days and I was not out of pocket and the transactions to fix it all generated points so I ended up with about 50000 points that I converted into vouchers so I ended up ahead.

I check every purchase against my records every month and pay the bill well before the interest free period.

Barry

PS I actually paid the wrong amount one month and overpaid by $2500. It took 2 months of transactions to use up the credit!