Chip-And-Sign Credit Cards Are A Security Risk, Warns FBI

[Alec Mowat]

Someone didn't bother to read the article. it's "chip and sign" that's a risk. Europe uses chip and PIN. the FBI is be-moaning the fact that we haven't gone to PIN instead of signature. No bank is charging for a chip card. I have all of my cards now, and have 5 cards with chip, and paid nothing. The banks were required to do that. We will have chip and PIN in a few years, when they've upgraded the readers.

That's correct the cars are free for us.
However merchants have to pay for new card readers, they start at abut 600 bucks.

I think the rule is if you don't get a new card reader and its your PoS machine that gets hacked your store has to pay for the damages.

Free cars and 100 year old credit cards?
This thread is so America!

 

[thundervore]

I can see those criminals now....oops I meant Executives. Want a new chip card? Sure that will be $9.99 + Shipping and handling + processing fee and administration fee for converting your old card.

Bank of America and Chase both sent me new chip cards months ago. Both the chip and the magnetic strip work, so it doesn't matter what the merchant accepts.

When I went to Target who uses the same terminal I sipped and it rejected my card because it detected the chip so I had to insert it and sign. That is how it should be. Target has it right!!!

Target jumped on board so quickly was because they were burned recently due to the negligence of a company they contracted with. Target has had to shoulder a lot of that blame so naturally they are doing everything they can to improve their reputation.

Also, this is exactly how the credit card machines work at my company. If the salesperson doesn't notice the chip and swipes it, the machine halts you and insists that you insert the chip. However... if a chip has failed, most of these units let you swipe the card after repeated failed attempts. Similar to manually entering card numbers in the case of a bad stripe.

I have only heard of one case of a faulty chip so far, and that was because the card was physically warped. Come on people, use a wallet for crying out loud.

I used my card twice this weekend at Home depot and what was odd is that on 1 transaction I swiped it and it approved, on the second transaction I inserted it and it also approved. So in your company it rejects the swipe if a chip is present, same for Target, but some companies like Home Depot they have not even implemented this extra level of security. These companies need to adhere to a standard level of security when chip cards are used.

To clarify, I mean they sent them to me free of charge. They're doing a gradual rollout, probably 1/3 to 1/2 of the cards we process are chip cards now. That number will continue to go up as they send out new cards to customers. Of course the FBI is recommending chip and pin and basically nobody uses that. Good luck with THAT. You're more likely to see a switch from chip and sign directly to NFC (mostly smartphone based) transactions.

Personally I hope they never eliminate cash.

All my banks sent me new cards too free of charge but this only happened after the whole Target incident. Amex was the first to send me my new chip card around the beginning of the year, then Bank of America sent me my new chip credit card around April, then they sent my chip debit card about a month ago. I'm still waiting on Alliant as they wont send me a new chip card because I have never used the card physically.

When I went to Montreal back in 2010 they already had chip cards and I couldn't use any ATMs unless it was a Bank of Montreal ATM. It was the only ATM that accepted my Bank of America card. What I'm trying to say is that the banks in the USA are taking their sweet time in rolling out these new cards because it is an additional cost to them, and if the whole Target thing didn't blow up as big as it did they may not have even bothered to roll out the new chip cards.

 

[Lovolt]

The US also went to chip and sign instead of chip and pin because the US is the only country where people have and use 3-6 credit cards. In most other countries people have one, maybe two. Banks were worried that people wouldn't be able to remember 6 different pins and would consolidate the number of cards they had.

 

[thundervore]

The US also went to chip and sign instead of chip and pin because the US is the only country where people have and use 3-6 credit cards. In most other countries people have one, maybe two. Banks were worried that people wouldn't be able to remember 6 different pins and would consolidate the number of cards they had.

So what they are saying is that Americans are so stupid that that they cannot remember that many different pins?

Why not just use the same pin for all the cards? One bank will not know what your pin is from another bank and shouldn't care