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Why Alternate Payment Schemes Get No Love
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WKash
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WKash,
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2/18/2014 | 12:25:51 PM
Re: Chip and PIN will win
Lorna, you're probably right about AMEX, VISA, Mastercard and other card providers. Pay Pal is probably looking pretty attractive right now to the electonic wallet crowd.  One question though is whether they would guarantee to cover (absorb) fraudulent purchases, the way the credit card companies now do (and promote).

 
Lorna Garey
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Lorna Garey,
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2/14/2014 | 6:10:03 PM
Re: Chip and PIN will win
Wyatt, AmEx, MasterCard and Visa have to be living in fear that EBay/Paypal, Google and Apple will decide to stop infighting and band together to come up with a simple, secure and widely accepted standard way to implement a mobile wallet. All that's keeping the status quo is fragmentation.

Kurt Marko pointed me to news that Icahn is pushing EBay to spin Paypal out. Interesting times.
Lorna Garey
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Lorna Garey,
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2/14/2014 | 6:06:23 PM
Re: Chip and PIN will win
I didn't say (or mean to imply) that EMV cards are less convenient. I have one, and it's no different from using any card. The cards I am disussing are these:

http://www.coindesk.com/bitcoin-exchange-mt-gox-adds-extra-security-one-time-password-card/

Not sure where you shop, but I promise you, an OTP card is jamming up the line at my local market.
WKash
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WKash,
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2/14/2014 | 6:03:49 PM
Re: Chip and PIN will win
I have to agree. What the Target breach taught us is that the vulnerabilities are in the architecture that carries the data, not the cards or EMVs.   

That said, cards that require PINS would have saved American Express $1800 last week, after someone made off with my AMEX card and went on retail buying spree, merrily swiping my card at a dozen stores.  If I hadn't alerted AMEX the card was missing, he/she might have wrung up another $1800 or more in charges. A PIN would have prevented that.  But I'm a happy AMEX customer.  The wiped the charges off my account and sent me a new card.

One suspects its cheaper for them to write off the losses than to get behind a national campaign for smarer card systems that retailers, already unhappy with the percentage card issues collect, are unlikely to pay.

 
Lorna Garey
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Lorna Garey,
User Rank: Author
2/14/2014 | 2:17:28 PM
Re: Chip and PIN will win
bwalker, I was talking about new electronic cards like the one I saw on the news segment. There's no way in a zillion years I would use a debit card linked to my bank account.

Absolutely we all pay for fraud - but at some point, does it make sense to spend a lot as an ecosystem on chip and pin POS systems when they supply only incrementally more security than what is in place now?
Lorna Garey
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Lorna Garey,
User Rank: Author
2/14/2014 | 11:37:07 AM
Re: cash is king
The arc of history bends not only towards justice but towards convenience. On Monday, I didn't even slow down at a toll plaza (EZPass can now read at 55 MPH). I no longer need to research new artists; Amazon tells me what I want. Heck, I can deposit a check by taking a photo of it with my phone. Cash is convenient for very small purchases like those Chris describes, but overall, people prefer to use plastic, if only to rack up whatever rewards they get. That 2% back adds up over time.

While I agree chip and pin will help, unless CC providers figure out how to meld convenience and security, the field is open for a disruptive new tech. Just wish I knew what it was ..
ChrisMurphy
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ChrisMurphy,
User Rank: Author
2/14/2014 | 11:23:07 AM
Re: cash is king
No, I still use a credit card for nearly everything -- I'm exactly the person Lorna describes, who figures the risk falls on someone else. The only things I can remember paying cash for the past two weeks are a middle school basketball game admission and a parking meter (and more street parking systems around here are starting to take credit).
Lorna Garey
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Lorna Garey,
User Rank: Author
2/14/2014 | 10:21:56 AM
Re: Chip and PIN will win
I actually now have an EMV card, but have yet to notice a PoS system that takes advantage. And all that stops is fraud with the physical card. The back end is still wildly insecure. You wrote about PCI how many years ago, and the Verizon report shows not much has improved.

I agree the US will gradually move to EMV. However, is that just a false sense of security?
Marilyn Cohodas
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Marilyn Cohodas,
User Rank: Author
2/14/2014 | 10:15:34 AM
Re: Chip and PIN will win
Agree, Drew. And it's proven technology in Europe already....


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