4 ms·
Why isn't chip and pin mandatory in America?
by robbiewright 13y ago
Why isn't chip and pin mandatory in America?
- jsaxton86 13y agoI heard a rumor that it's because Visa/MasterCard don't want to update every point-of-sale terminal in the country.
- tadfisher 13y agoVisa and MasterCard are actually pushing for chipped cards. In 2015, all major card issuers are shifting fraud liability to merchants if they don't update their POS systems to handle chip & pin or chip & signature: http://en.wikipedia.org/wiki/EMV#United_States http://en.wikipedia.org/wiki/EMV#United_States
- dangrossman 13y agoMerchants already have complete fraud liability today, as they always have. If stores don't upgrade their hardware, their liability will be the same in 2015 as it is today. In 2015, if you implement EMV, and take a chip-and-pin transaction at the point of sale, and the card itself is counterfeit, then you won't be liable. If you don't support EMV, the liability will be the same as it is today. If you do support EMV, and the fraud is something other than a counterfeit card, the liability will be the same as it is today. It's almost as if they designed the incentive to create a talking point when selling the EMV hardware to retailers, without actually shifting any meaningful liability away from them, so the card brands and banks can continue suffering none of the losses due to fraud outside their merchants' reasonable ability to stop.
- tadfisher 13y agoI was under the impression that fraud liability for card-present transactions today lies with the bank or card issuer, not the merchant.
- robbiewright 13y agoMost point-of-sale terminals in Australia have been upgraded recently to facilitate RFID enabled cards. But I guess that will only happen in the US once banks start issuing RFID/chip and pin cards by default. I hope for the sake of those 110 million people that the banks sent out modern debit/credit cards to those who cancelled their cards.
- code_duck 13y agoVisa and MasterCard don't own the terminal... The merchant banks or businesses do.
- alexeisadeski3 13y agoI hate chip and pin. Having to deal with a stupid little machine terminal every time I'm in a restaurant is just obnoxious.