Credit Cards Changing To Chip + PIN

[jyl]

Huge credit card data thefts that have hit US retailers in the last few years. Target was a huge one recently, TJ Maxx before that, and smaller thefts occur all the time.

There were some weird charges to my MC last month. Walmart purchases I never made. I called the card company to contest the charges and get a new card. The call center lady told me they have been slammed with similar calls, but expect the real wave of fraudulent charges in a few months.

It turns out that by 2015, credit cards in the US will move to a European system of chips embedded in the card, and a PIN that the consumer keys in. This is supposed to be more secure than the current magnetic stripe and signature system.

My question is, what do you think about the chip/PIN system? Those who have used it?

[porsche4life]

I have a card with the chip, but haven't used that feature yet. I've read that it's really no different to use however.

Will be interesting to see how many metal credit cards come out. That seems to be the only ones with chips right now.

[slodave]

I think it's a great improvement. I've had experience with them in Europe.

[718]

The cars are slightly heavier and stiffer. They work fine in Europe, and it will cost a lot to change over every POS machine in the US.

The system can still be hacked. Did you see the latest news on Target?

[stomachmonkey]

Originally Posted by jyl

Huge credit card data thefts that have hit US retailers in the last few years. Target was a huge one recently, TJ Maxx before that, and smaller thefts occur all the time.

There were some weird charges to my MC last month. Walmart purchases I never made. I called the card company to contest the charges and get a new card. The call center lady told me they have been slammed with similar calls, but expect the real wave of fraudulent charges in a few months.

It turns out that by 2015, credit cards in the US will move to a European system of chips embedded in the card, and a PIN that the consumer keys in. This is supposed to be more secure than the current magnetic stripe and signature system.

My question is, what do you think about the chip/PIN system? Those who have used it?

No different than using a debit card or keying in your zipcode on a current CC but more secure.

[Bill Douglas]

I've had one for a year or so now. It works fine. Plus it works for "proxity swiping" for purchases under $120. It's harder for the Chinese to copy too.

[TheMentat]

Canada made the switch a few years ago. Much simpler from the merchant's perspective. For whatever reason AMEX cards still require signatures on some older point-of-sale terminals, and it seems like a real hassle now. FWIW, the last time I had a fraudulent purchase was in the US, where the merchants don't have to use the updated security protocols.

[sc_rufctr]

Originally Posted by jyl

Huge credit card data thefts... snip

My question is, what do you think about the chip/PIN system? Those who have used it?

I've got one with a chip and it requires a PIN to make a purchase. There's really no difference to the older sign and strip system.
What does worry me is the ability to "wave and pay" but I try not to use that anyway.

Meanwhile, all of the major credit card companies have help desks located in places India and The Philippines.
The problem with places like this is that their staff changes daily and they have a history of poor record keeping.

[Heel n Toe]

We saw a news segment on this recently. The part that impressed me (if it is true) is that your info is encrypted on the chip and every time you use (swipe) the card, it changes the encryption... theoretically making it more difficult to "hack."

Anyone know if it's true?

[red-beard]

It will help prevent "casual" fraudulent use where someone simply photographs your credit card. It will not stop something like the Target breach. In something like the Target breach, I expect the hackers can get your CC number and PIN during the sales process.

[onewhippedpuppy]

Our bank shut down my wife's Visa yesterday after there were four transactions in OH and MI. We aren't traveling so it's not us. Fortunately only about $100 at places like Kroger and a Shell station, so we apparently bought someone gas and groceries.

I like the PIN angle, at least that's harder to steal.

[mreid]

Also don't let the card ever leave your sight. They use hand scanners (at least in the UK) so a server never has a chance to copy your card. Our security team took my card and in less than 30 seconds made a copy on an old hotel key that I later used to purchase gas. The technology used was hand held and about $300 on eBay. Scary stuff! I pity the last bank to convert as all fraudsters will focus on the weakest link.

[mikesride]

DISABLE THE TAP N GO FEATURE!!!!!
We have had them for a few years now, my last card was set up with "tap to pay" features on it.....very scary. I don't understand why you have the technology to ensure one needs the added security of a PIN but you can disable that and turn the same card into a free money machine for anybody that finds or steals your card!! My bank shipped the card out with the feature activated...you have to contact them to disable the feature.
I only found out when I accidentally paid for my mother in laws groceries... She was in line infront of me, bagging hers up, cashier totals up, machine READS MY CARD FROM A DISTANCE OF ABOUT 10 INCHES FROM THE MACHINE!!!!!! And presto!!! I paid for her groceries!!!
Scary stuff.

[Christien]

Originally Posted by mikesride

DISABLE THE TAP N GO FEATURE!!!!!
We have had them for a few years now, my last card was set up with "tap to pay" features on it.....very scary. I don't understand why you have the technology to ensure one needs the added security of a PIN but you can disable that and turn the same card into a free money machine for anybody that finds or steals your card!! My bank shipped the card out with the feature activated...you have to contact them to disable the feature.
I only found out when I accidentally paid for my mother in laws groceries... She was in line infront of me, bagging hers up, cashier totals up, machine READS MY CARD FROM A DISTANCE OF ABOUT 10 INCHES FROM THE MACHINE!!!!!! And presto!!! I paid for her groceries!!!
Scary stuff.

I think the tap to pay is only usable up to certain amount, for small purchases. It's really convenient for things like a coffee, couple things at the convenience store, etc.

I don't think they still provide non-chip cards in Canada anymore - we've had chips for years now. Feels weird when I'm in the states and have to swipe my card

[Neilk]

The zip code "security" feature on credit cards is absolutely ridiculous. Someone takes your wallet which nearly always contains some kind of ID that has your zip code on it, so it's no security whatsoever at any place that just validates billing zip code, like at gas stations. Chip and pin cannot come soon enough.

[JAR0023]

Only carry one card right now and it does not have an RFID chip. Previous cards I've received with an RFID chip all got a visit from an 1/8" punch and hammer. If companies get around to adding a manually keyed in PIN, I'll think about using the RFID feature. Until then, no. -J

[Brando]

Definitely worth repeating:
"It will not stop something like the Target breach."

Keep in mind as technology advances, hackers/thieves advance their tools.

Hacker's Demo Shows How Easily Credit Cards Can Be Read Through Clothes And Wallets - Forbes

Wired 14.05: The RFID Hacking Underground

Originally Posted by red-beard

It will help prevent "casual" fraudulent use where someone simply photographs your credit card. It will not stop something like the Target breach. In something like the Target breach, I expect the hackers can get your CC number and PIN during the sales process.

[Outback Porsche]

The requirement/choice for a signature is about to dissapear down under. Can't remember the last time I wrote my moniker for a credit purchase, probably about the same time I last wrote a cheque.

I don't like the wave and pay feature and thus don't use it willingly. I did find out the hard way once that your credit card doesn't even have to come out if your wallet for it to work. Just your wallet in the proximity of the POS will do.

One bank here is also introducing a 'stick-on chip' linked to your credit card for your phone. Just wave your phone and go. Bad idea if you ask me.

[tcar]

Originally Posted by onewhippedpuppy

...so we apparently bought someone gas and groceries. .

No you didn't...

Didn't come out of your pocket.

[LakeCleElum]

Chip cards have been common in Europe since the mid-90's.

The problem is the new "Chip" cards in the US is they still have the magnetic strip also. Called a "Hybird" card.......That were most of the fraud comes from, so no more secure at all.

For a true "chip" card in the US, retailers would have to have new hardware to read the card.

Also, card companies produce cards with the strip for about $1 a card. A chip card is more like $3 per card......Some banks have chosen to pay the cost of fraud vs more to produce the more expensive card.

There is a push to require retailers to have the chip reading systems by some date in 2015.....