Skip to main content
No. of Recommendations: 3
xtn,

You wrote, Give me back my swipe cards. Faster than using the chips, and faster than using the cell phone. Screw extra security, I want the least effort.

Right... I don't find them all that painful. And the POS systems seem to be getting better, at least around here.

The additional security actually benefits the merchants most because banks mostly make the merchants eat credit card fraud. The chip is used to cryptographically authenticate a transaction by signing it with a key that only the bank and the chip know. This should guarantee that the card is authentic - assuming a hacker doesn't expose a bank's database.

This benefits the merchant because it proves that the merchant was in possession of a legitimate card at the time of the transaction. That makes it tough to dispute the charge, because only the NSA could afford the devoted resources needed to duplicate a chipped card. (Even then they'd need to be in possession of the card for a while.) So now the merchant now has proof that the card was authentic making it difficult for the bank to justify a charge-back on the basis of fraud.

This one change effectively ends a huge fraction of all credit card fraud. Once every brick and mortar merchant requires chipped cards, the banks will need to figure out how to do something similar for online merchants.

In any case, it's still faster than paying cash. And way faster than writing a check.

- Joel
Print the post  

Announcements

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.