No. of Recommendations: 2

You wrote, They all have a unique identifying chip built-in to the card. It's not an RFID card, but it is unique to each card, which makes counterfeiting impossible (or at least uneconomical).

A unique ID does nothing to make a card / chip impossible / expensive to duplicate. Case in point: Your credit card number is unique.

Also, Some of them require a PIN for every transaction.

This is a good first step as long as the PIN is always required and as long as the PIN does not have to be short. But just a PIN is not enough as they can be taken through skimming or shoulder surfing.

It seems to me that the only right way to solve this is to use a cryptographic grade handshake involving a shared secret. The handshake must be able to validate the connection through a shared secret (cypher key) known only to the device and the bank without disclosing the secret over the network. This is the same type of problem found in any secure communications protocol. I don't know whether the European card standard actually solves the problem in part because I never travel to Europe...

- Joel
Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.