4 ms·
> possession of credit card data amounts to permission to charge any arbitrary amount to it The word you're looking for is "capability", not permission. Permis
by bradleyland 14y ago
> possession of credit card data amounts to permission to charge any arbitrary amount to it
The word you're looking for is "capability", not permission. Permission requires consent, which is something you give separately from the actual card number.
A minor point, but I think it changes the tone of that statement.
> possession of credit card data amounts to the capability to charge any arbitrary amount to it
I'm not sure anyone is ignorant of this fact though, and yet everyone seems OK with it.
> Not only should future payment systems be based on cryptography, but they should also require an affirmative step on the part of the payer to initiate a given transaction of a given amount. In other words, it shouldn't be a matter of handing over your card number, or even a one-use cryptographic token, and letting the merchant fill in the details. You should have to explicitly send an amount of money that you specify. Then, of course, a smart merchant would verify that the amount is correct before fulfilling her end of the bargain.
Ugh, no thanks. The system you describe is more like cash. I have to actively dole out the necessary amount, and then receive change that is counted at each transition. I abhor these types of transactions.
Convenience is a significant motivator in the adoption of credit cards. Any competing system will have to compete on simplicity. The fact that consumers and merchants haven't fled from credit card use as fraud rates (and costs) have increased is evidence that the market is willing to bear them.
The legislative changes that allow merchants to charge a CC-use surcharge will resolve the significant matter of ignorance. I do agree that consumers are largely ignorant of the hidden costs of fraud associated with the current CC model. The question is whether they'll pay these costs once they're brought to light. I believe they will continue to pay them in exchange for convenience.
- nitrogen 14y agoUgh, no thanks. The system you describe is more like cash. I have to actively dole out the necessary amount, and then receive change that is counted at each transition. I abhor these types of transactions. Not in this case. There's no reason the merchant can't send a request for a specific amount, encrypted using your credit account's public key and signed by their private key. Your credit authorizing device (smartphone, desktop app, phone call, whatever) then asks you to confirm the amount, and that amount is sent back to the merchant. I'm sure there's some way of cryptographically tying the request for funds to the transmission of funds so that it's clear what transaction the funds are for, that the amount sent matches the amount requested, etc.
- Domenic_S 14y agoAren't you basically describing the "Request Money" feature of PayPal?
- nitrogen 14y agoNo, because that only works through PayPal. This is more about a system that can be automated independently of the bank or service provider and provides independent cryptographic verification of transactions.
- jarrett 14y agoYes, but imagine you can use it at the grocery store or a restaurant. Also, PayPal has a questionable reputation, so I wouldn't want to rely on them for all my day-to-day transactions.
- jarrett 14y agoYes, capability is a fine word for this. I'd say the practical consequences are still exactly the same, regardless of the label. Ugh, no thanks. The system you describe is more like cash. I have to actively dole out the necessary amount, and then receive change that is counted at each transition. I abhor these types of transactions. Not as I imagine it. I think the merchant would be able to set up a transaction, and the consumer would have to take a minimal step to approve it. Also, if this system would annoy you, I'd be fine with allowing individual consumers to opt out of it. Personally, I would absolutely opt in. The fact that consumers and merchants haven't fled from credit card use as fraud rates (and costs) have increased is evidence that the market is willing to bear them. Partially. But this fact can also be attributed in large part to the major barriers to entry.