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> And there could always be a card that does 2fa for every transaction in exchange for lower fees, that would have to lower the chance of fraud to near 0. Two
by slimginz 5y ago
> And there could always be a card that does 2fa for every transaction in exchange for lower fees, that would have to lower the chance of fraud to near 0.
Two questions here:
1) I could be wrong here but isn't that what the Chip and Pin combo is supposed to be? At least in the US I swear I remember the reason why a ton of businesses moved from swipe and signature to chip and pin was that they would get charged a lower fee.
2) Could someone explain to me why (at least in the US) debit cards are universally require some sort of 2FA but credit cards don't?
- OldTimeCoffee 5y ago1) The US just uses the chip instead of the mag stripe. It doesn't use a PIN on most cards. Chip cards were mandated, but not using a PIN. Even on a debit card, if your bank allows the card to be used as a credit card, won't require a PIN. 2) Debit cards and credit cards are regulated separately. Most of the difference in regulations are around fraud so using a PIN helps combat fraud. Of note, the disputed amounts on a debit card aren't required to be returned to your account while disputed. On credit cards, however, they can't charge interest on the disputed amounts on a credit card while disputed so they are removed from your balance.