So what was the point of getting credit cards with chips in them?

It's my understanding that if the retailer doesn't use a chip reading machine, they (the retailer) are the ones that are liable for a fraudulent transaction.
 
bob91yj said:
It's my understanding that if the retailer doesn't use a chip reading machine, they (the retailer) are the ones that are liable for a fraudulent transaction.
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That's what I was told too.. If the retailer doesn't use the new chip technology then they are liable for fraud.

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Scott said:
That's what I was told too.. If the retailer doesn't use the new chip technology then they are liable for fraud.
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I work in retail. This is correct. There was a cutoff date; March, I believe.

Big, American banks drug their feet on this simple technology for years. They like spending billions on bonuses--not protecting their customers. The typical chip experience for an American consumer is currently years behind what they've had in Europe for nearly a decade at this point.

2010. 2010, I'm in Germany, buying a hat at a department store. I hand over my Chase Visa to the teller. She looks at me funny and points to the card reader on the counter. Insert card, please. Oh. Card reader swipes the card for me. Tries three times for me. Rejects my card (because it doesn't have a chip). When she realizes I'm a foreigner without a chip, she asks to see my passport and swipes manually on the terminal. Alles gut, mein Herr.

You put your card in the card reader, it pulls it in, scans the chip, and immediately ejects it right back out. Done and done. None of this, do-not-remove-your-card-derp-derp BS. We're supposed to be a super power. Meh.

2013. A German friend and I are sitting in a brewery comparing cultural notes after a day 4-wheeling with the local Mitsubishi group. He suspects he's on some kind of hidden camera show, as the Kolsch he ordered tastes nothing like an actual kolsch. Anyway, he shows me his card. His ONLY card.

It looks like a driver's license. Got his picture, magnetic stripe, holographs, etc., and a chip. It's tied to all his bank and credit accounts. When he uses it in the fancy card readers, the screen displays a list of his accounts and he simply touches the one he would like to use for the purchase. Then his card is ejected and he completes the transaction.

If the card gets lost or stolen, one call handles all of them. Wouldn't THAT be nice.

Anyway. Thought I'd share my two bits on this one.
 
I actually prefer the chipped card. Sure it takes longer, at least it does now anyway. Should speed up when businesses start upgrading equipment. Anyway, the chip is significantly more secure. I know, I know... It's new and can't be good. Hear me out for just one minute. The magnetic stripe on the back of your card is hard coded. It carries a static transactional code. This means that every time you swipe your card, it connects to your account using the same info every time. Very easy to skim the data on a card reader and duplicate the card info. A chipped card generates new transactional codes every time it is inserted into a chip enable machine (which is why it takes longer). Skimmers can still steal that transactional code. But that code is unique to that single transaction and can not be used again. So a skimmer can not duplicate your card with that data.

I noticed someone said they had there credit card info stolen 4 times since the changed to chip. 2 responses to that. And I don't know you so I am speculating wildly here. 1) if you swipe your chipped card with the magnetic stripe it will still work like the old card. You have to use the chip for the chip function to work.
2) Chip doesn't protect against online purchases. If you physically enter your card info into a website, then your actual account information is now on that site. This means if you have un-savory-ware on your computer (probably from opening emails you shouldn't have or visiting websites that just aren't kosher) then your card can be duplicated.

I'm not saying the chip is invincible, its not, and its only a matter of time before someone finds a way to clone them. But, it is definitely more secure than the magnetic strip, and if that means waiting a few extra seconds for the randomized transactional code to generate, than I'm going to start leaving the house a few seconds early to run my errands.
 
CJones said:
Anyway, the chip is significantly more secure.
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My understanding is that the more advanced hackers say it is so much easier to hack the "chipped" cards. They do not even need to touch the card just get within a few feet of it. Better get that RFID blocking wallet is all I have to say.
 
KM4DWS said:
My understanding is that the more advanced hackers say it is so much easier to hack the "chipped" cards. They do not even need to touch the card just get within a few feet of it. Better get that RFID blocking wallet is all I have to say.
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Not sure that is true. The chip is not a emitting device. It requires contact with special pins to be read. Also, if it did, the device hackers would be using would need to make contact with the bank and generate a transactional code. And that transactional code will have been used so the data collected is useless.
 
So many of the new chip cards also have NFC ability built in... Watch this a skip to about 9:28... Now today it is even easier that it was here.

 
KM4DWS said:
So many of the new chip cards also have NFC ability built in... Watch this a skip to about 9:28... Now today it is even easier that it was here.

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That video was published back in 2012 when the chips that were being put into cards were RFID chips. The chips we are referring to (I think) are the gold ones being put on cards now. He even calls it by name "RFID Tag". Not the same thing. The new "chips" are not RFID enabled, which is why they must be inserted into the card reader to work. The new cards can not be used by waving them over the RFID enabled card readers, like he describes. I think we might just be talking about different things. :)
 
Contact less rfid chips and the new chips are different technologies. The old rfid chips are hard coded like the mag stripe, so easy to steal and reuse. The new contact chips do not use rfid and can not be skimmed. Like was said earlier, they are more secure because a new code is generated every transaction. Also visa has already announced they are releasing a new faster chip card. Fun fun, as all the retailers will have to most likely update again. :)

Sent from my RTT while stargazing
 
There was a story on the evening news that mentioned that there was going to be a software update pushed to retailers using the chip readers that will speed up processing by 10-12 seconds.

Isn't that good news for all of you time crunched consumers!

For the tin foil hat crowd this update is a conspiracy by the government and banks to [insert crackpot theory here].
 
odomandr said:
Why does it take so long to process payment using the chip? I know it's only an extra minute but waiting for it to read takes so long.....

Sent from my SM-N910T using Tapatalk
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It take longer because the transmission of your data from the card/chip to the merchant bank is now a two way transmission as the machine at the retailer now receives back a security code based on the chip technology.

Yes it takes longer. Deal with it in an industry effort to curb billions in fraud that cost us all money at the register. It won't stop stolen cards from being used in the chip enabled machines, but 'may' slow down counterfeiting of the cards.

bob91yj said:
It's my understanding that if the retailer doesn't use a chip reading machine, they (the retailer) are the ones that are liable for a fraudulent transaction.
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This is true and the 'change' in liability for fraud was actually last October, not March as another poster stated above.

Know this because I work for a credit card processor and associated acquiring banks.

It's been unbelievable how slow some big box stores have been implementing the chip usage. Albertson's just converted recently and either Lowes or Home Depot hasn't or also just implemented. That's a lot of liability for those big stores to accept.
 
I encountered my first one yesterday at Home Depot. Reading and processing seemed just as fast to me, minus the polite Frank Underwood the machine gave me when I swiped instead of inserting, and having to wait until it was done processing before stowing the card (I normally have it stashed before it's time to sign).

Fry's Fuel still doesn't have it, neither does grocery.


Sidebar: the next Honda I find parked in the Trailers Only spot at Homey-D is getting relocated courtesy of my winch. :mad:
 
Chazz Layne said:
I encountered my first one yesterday at Home Depot. Reading and processing seemed just as fast to me, minus the polite Frank Underwood the machine gave me when I swiped instead of inserting, and having to wait until it was done processing before stowing the card (I normally have it stashed before it's time to sign).

Fry's Fuel still doesn't have it, neither does grocery.


Sidebar: the next Honda I find parked in the Trailers Only spot at Homey-D is getting relocated courtesy of my winch. :mad:
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Hahahahahaha.. As a fan of "House of Cards" the "polite Frank Underwood" comment got me.. Hahahaha

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