New chip cards need a PIN to protect consumers, retailers tell Congress


Olde Hornet

Well-Known Member
This has been my complaint with the new cards, I dont think the credit card industry in the US will address this until the costs is to high. These new cards will be more expensive to reissue. The rest of the world uses these cards with a PIN, but the US credit industry does not want to ask us to use a PIN, in reality, they dont care if your credit history gets screwed over, they only care about their costs.

http://www.usatoday.com/story/money...t-consumers-retailers-tell-congress/73523002/


Our credit cards are now secured with computer chips, but the world’s largest retail trade group says consumers are no safer, while businesses are being forced to spend up to $35 billion.

Most banks and credit unions are issuing credit cards that require a signature, rather than a PIN, a move that the National Retail Federation says means businesses are spending a fortune on terminals and software that will process "partially protective cards'' that are still vulnerable to data breaches.

“The new EMV equipment does not stop breaches,” said David French, NRF senior vice president for government relations, in a statement submitted to the House ofRepresentatives’ small business committee. “Indeed, in many cases it provides no significant benefits either to the business or to the business’ regular customers. It is merely an additional expense small businesses are being told to bear.”
 
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As predicted, the chickens have come home to roost.

https://www.yahoo.com/finance/news/credit-card-thieves-move-online-130000173.html

The use of stolen card data to pay for merchandise on websites, in mobile apps and by dialing call centers surged 40 percent last year, according to a report from Javelin Strategy & Research released Wednesday. That’s forcing merchants to spend billions on online fraud protection in an effort to detect when a crook is using someone else’s card number.

“We are seeing more sophisticated type of fraud moving into the online environment,” said Erika Dietrich, global director of payments risk management at fraud fighter ACI Worldwide.

By the end of last year, almost 1.81 million U.S. merchants had switched to accepting European-style chip cards, more than double the number the year before, according to Visa Inc. Issued by banks, cards containing the so-called EMV technology are much harder to counterfeit, which cuts down on in-person fraud at stores.
 
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