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Does anyone know why other technologies didn't catch on? I could imagine more powerful regulators in other countries being one factor and lower cost as another

Does anyone know why other technologies didn't catch on? I could imagine more powerful regulators in other countries being one factor and lower cost as another but I really don't know whether those are the real drivers or not.

nemothekid 13y ago
Swiping is American? Or the general public isn't aware. Here in San Francisco, RFID readers (Google Wallet, PayPass Credit Cards) are common, but a majority of people still swipe, even if their cards supports it.
Philadelphia 13y ago
It's probably mostly a matter of it not providing enough advantage to justify the huge expense of replacing everything.
- skeletonjelly 13y ago
  Has to be something else. Chip and/or RFID is pretty common in every country I've been to that isn't USA.
techsupporter 13y ago
At least one article I found says that it's about liability: https://origin.bankrate.com/finance/credit-cards/are-chip-and-pin-credit-cards-coming-1.aspx https://origin.bankrate.com/finance/credit-cards/are-chip-an... Supposedly the big motivator behind the chip and PIN push in other countries is that liability for fraudulent transactions could be pushed onto the cardholder. ("You didn't guard your PIN and your money was stolen, sucks for you.") That article says that Regulation E of the Electronic Funds Transfer Act of 1978 in the United States prohibits such a shift by US banks. Without the motivation, banks in the US haven't invested in the infrastructure because it doesn't get them anything. Swiping a card "just works," people are used to it, it's a solved problem, and doesn't require any new outlays of money (not just for the cards and readers, also advertising about how it works, increased call center staff for confused customers, more livery for merchants, and so on) so I guess they're letting sleeping dogs lie.
- zwieback 13y ago
  Thanks, that explanation makes perfect sense.

nemothekid 13y ago

Swiping is American? Or the general public isn't aware. Here in San Francisco, RFID readers (Google Wallet, PayPass Credit Cards) are common, but a majority of people still swipe, even if their cards supports it.

Philadelphia 13y ago

It's probably mostly a matter of it not providing enough advantage to justify the huge expense of replacing everything.

skeletonjelly 13y ago
Has to be something else. Chip and/or RFID is pretty common in every country I've been to that isn't USA.

techsupporter 13y ago

At least one article I found says that it's about liability: https://origin.bankrate.com/finance/credit-cards/are-chip-and-pin-credit-cards-coming-1.aspx https://origin.bankrate.com/finance/credit-cards/are-chip-an... Supposedly the big motivator behind the chip and PIN push in other countries is that liability for fraudulent transactions could be pushed onto the cardholder. ("You didn't guard your PIN and your money was stolen, sucks for you.") That article says that Regulation E of the Electronic Funds Transfer Act of 1978 in the United States prohibits such a shift by US banks. Without the motivation, banks in the US haven't invested in the infrastructure because it doesn't get them anything. Swiping a card "just works," people are used to it, it's a solved problem, and doesn't require any new outlays of money (not just for the cards and readers, also advertising about how it works, increased call center staff for confused customers, more livery for merchants, and so on) so I guess they're letting sleeping dogs lie.

zwieback 13y ago
Thanks, that explanation makes perfect sense.