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It's all chip and pin where I live too, and has been for ages. Often enough, the chip or the reader is dirty and fails to read, the terminal will prompt you to

It's all chip and pin where I live too, and has been for ages. Often enough, the chip or the reader is dirty and fails to read, the terminal will prompt you to swipe the card through the mag-reader instead. Usually, it will prompt you to try the card reader again, then back to the mag-reader for a final swipe before continuing.

rocqua 8y ago
In the Netherlands, when we switched to a new chip system, most terminals blocked the mag-swipe with some cardboard sign instructing the user to use the chip instead. I'm pretty sure the swipe-style is aggresively deprecated by the banks. I talked to a vendor who had an older terminal that would not accept NFC, and he mentioned that within 2 years, he'd have to get a terminal that would process NFC payments.
- tialaramex 8y ago
  The deprecation works by shifting fraud risk to the merchant. I know for a fact this was done in the US and UK, and I would assume the rough playbook was used everywhere, it's named "liability shift". The idea is, if there's fraud and the real account holder gets their money back (a chargeback in payment industry terms) somebody has to eat that loss. The liability shift rules say if you didn't do EMV, that's you. For a bank that decided they wouldn't issue EMV cards, they pay when there's fraud on their non-EMV cards - so the merchant still gets their money. But for a merchant if the customer has an EMV card but they swipe it, if that comes back as fraud they're not getting their money. If the terminals suck, and your business has very low fraud rates or your markup is so enormous you can eat plenty of fraud and not care, it could make sense to ignore liability shift. Especially at first when customers know they could go elsewhere. But as terminals improve, and everybody else is forcing them to use the chip anyway, offering swipe is pretty much a sign "Commit fraud here, ask us how". For NFC I don't know, it's hard to imagine them trying liability shift. "Use this less secure option or, we'll stick you with fraud costs for the uh, more secure option?" maybe they're just doing the usual thing where they raise fees for everybody who doesn't want to go along with their latest craze :/

rocqua 8y ago

In the Netherlands, when we switched to a new chip system, most terminals blocked the mag-swipe with some cardboard sign instructing the user to use the chip instead. I'm pretty sure the swipe-style is aggresively deprecated by the banks. I talked to a vendor who had an older terminal that would not accept NFC, and he mentioned that within 2 years, he'd have to get a terminal that would process NFC payments.

tialaramex 8y ago
The deprecation works by shifting fraud risk to the merchant. I know for a fact this was done in the US and UK, and I would assume the rough playbook was used everywhere, it's named "liability shift". The idea is, if there's fraud and the real account holder gets their money back (a chargeback in payment industry terms) somebody has to eat that loss. The liability shift rules say if you didn't do EMV, that's you. For a bank that decided they wouldn't issue EMV cards, they pay when there's fraud on their non-EMV cards - so the merchant still gets their money. But for a merchant if the customer has an EMV card but they swipe it, if that comes back as fraud they're not getting their money. If the terminals suck, and your business has very low fraud rates or your markup is so enormous you can eat plenty of fraud and not care, it could make sense to ignore liability shift. Especially at first when customers know they could go elsewhere. But as terminals improve, and everybody else is forcing them to use the chip anyway, offering swipe is pretty much a sign "Commit fraud here, ask us how". For NFC I don't know, it's hard to imagine them trying liability shift. "Use this less secure option or, we'll stick you with fraud costs for the uh, more secure option?" maybe they're just doing the usual thing where they raise fees for everybody who doesn't want to go along with their latest craze :/