5 ms·

I don't really get it, are they only using the magnetic strip and not the chip on the card?

by nraynaud 13y ago

sandyarmstrong 13y ago
Most cards in the US don't have a chip.
- JoeKM 13y ago
  Why is this? If everyone else is using it to the degree that swiping is (quoted from another post) "ancient history", then why is the U.S. so behind? I don't live in a big city, but I travel a fair amount across the U.S. I have never seen a chip reader.
  - tbeseda 13y ago
    Consumer paranoia (many claim chips/RFID is unsafe) in addition to outfitting millions of retailers. Chip readers is where Square should be, IMO.
    - nraynaud 13y ago
      strange, because copying or reading a chip is very hard (last time I heard about it it was with a electron microscope), where copying a strip can be done in the same swipe as the transaction. I think I have seen a card in Germany with a different pin for the strip and the chip.
  - gamble 13y ago
    It was forced in Europe and Canada by shifting liability for fraud on swipe transactions to the merchant. Chips are very effective at preventing point-of-sale fraud. Mastercard and Visa had not tried to push it in the US, but they are getting more active now. As of this year, their processors are required to support chip transactions. By 2015 they will start shifting liability for certain transactions to the merchant if a chip card isn't used.
  - pbreit 13y ago
    Because it's a massive investment in replacing all POS hardware and cards for almost no gain (in fact, the customer experience is decidedly worse).
    - skeletonjelly 13y ago
      Worse? It's one extra step. Besides here in Australia the chip is already old tech. RFID is the new hotness. So much in fact it's killing the association that manages debit cards (EFTPOS)
      - amatix 13y ago
        In New Zealand it's certainly been worse - chip transactions consistently take 30+ seconds longer than swipe ones (ie. at least twice as long as the old way, just waiting around for the damn card reader) Though the new Visa PayWave/MC PayPass tap-and-go stuff is really quick and super-easy, but not many merchants have it installed yet.
kalleboo 13y ago
They are U.S./Canada only. The European equivalent (which does take EMV chip-and-pin) is iZettle https://www.izettle.com https://www.izettle.com
- itsybitsycoder 13y ago
  Chip & pin is very common in Canada, and for good reason: http://www.zimbio.com/Credit+Cards/articles/wqJ31IbmC13/New+Chip+PIN+Deadline+March+31+2011 http://www.zimbio.com/Credit+Cards/articles/wqJ31IbmC13/New+... (Visa & Mastercard are the biggest CC companies here. Hardly anyone has Amex, and Interac is a debit card thing that Square doesn't support.)
  - kalleboo 13y ago
    Ah, I hadn't realized that Canada had gotten with the game. So it's only the US alone which is lagging behind then, as usual :)
jrochkind1 13y ago
U.S. cards only have magnetic strips. It's possible there are some cards in the U.S. that have chips now, but point of sale systems don't generally use em, only the strip, yep.

I don't really get it, are they only using the magnetic strip and not the chip on the card?

sandyarmstrong 13y ago

Most cards in the US don't have a chip.

JoeKM 13y ago
Why is this? If everyone else is using it to the degree that swiping is (quoted from another post) "ancient history", then why is the U.S. so behind? I don't live in a big city, but I travel a fair amount across the U.S. I have never seen a chip reader.
- tbeseda 13y ago
  Consumer paranoia (many claim chips/RFID is unsafe) in addition to outfitting millions of retailers. Chip readers is where Square should be, IMO.
  - nraynaud 13y ago
    strange, because copying or reading a chip is very hard (last time I heard about it it was with a electron microscope), where copying a strip can be done in the same swipe as the transaction. I think I have seen a card in Germany with a different pin for the strip and the chip.
- gamble 13y ago
  It was forced in Europe and Canada by shifting liability for fraud on swipe transactions to the merchant. Chips are very effective at preventing point-of-sale fraud. Mastercard and Visa had not tried to push it in the US, but they are getting more active now. As of this year, their processors are required to support chip transactions. By 2015 they will start shifting liability for certain transactions to the merchant if a chip card isn't used.
- pbreit 13y ago
  Because it's a massive investment in replacing all POS hardware and cards for almost no gain (in fact, the customer experience is decidedly worse).
  - skeletonjelly 13y ago
    Worse? It's one extra step. Besides here in Australia the chip is already old tech. RFID is the new hotness. So much in fact it's killing the association that manages debit cards (EFTPOS)
    - amatix 13y ago
      In New Zealand it's certainly been worse - chip transactions consistently take 30+ seconds longer than swipe ones (ie. at least twice as long as the old way, just waiting around for the damn card reader) Though the new Visa PayWave/MC PayPass tap-and-go stuff is really quick and super-easy, but not many merchants have it installed yet.

kalleboo 13y ago

They are U.S./Canada only. The European equivalent (which does take EMV chip-and-pin) is iZettle https://www.izettle.com https://www.izettle.com

itsybitsycoder 13y ago
Chip & pin is very common in Canada, and for good reason: http://www.zimbio.com/Credit+Cards/articles/wqJ31IbmC13/New+Chip+PIN+Deadline+March+31+2011 http://www.zimbio.com/Credit+Cards/articles/wqJ31IbmC13/New+... (Visa & Mastercard are the biggest CC companies here. Hardly anyone has Amex, and Interac is a debit card thing that Square doesn't support.)
- kalleboo 13y ago
  Ah, I hadn't realized that Canada had gotten with the game. So it's only the US alone which is lagging behind then, as usual :)

jrochkind1 13y ago

U.S. cards only have magnetic strips. It's possible there are some cards in the U.S. that have chips now, but point of sale systems don't generally use em, only the strip, yep.