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The EMV chip credit card transition in the US has been a disaster

44 pointsby chewymousealmost 9 years ago

7 comments

korginatoralmost 9 years ago
I&#x27;m amazed at how EMV chip technology which has been in use in my country for over a decade, with chip based transactions being the de-facto mode, became a &quot;disaster&quot; in the US. Banks have started issuing chip-only cards, and several retailers don&#x27;t use magstripe any more. ATM cards too are chip-based for several years.<p>This &quot;disaster&quot; in the US appears more like a case of poor education and training than a problem with chip cards themselves.
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walrus01almost 9 years ago
All of this FUD about bars and restaurants is a solved problem in Canada, where almost everyone uses Interac chip and pin cards. There are lots of hardware choices of portable wireless chip and pin terminals for restaurant use.
resoluteteethalmost 9 years ago
Articles like this (&quot;chip cards are annoying and they&#x27;re pointless because we aren&#x27;t using pins&quot;) keep coming out lately, but I think it&#x27;s important to consider two facts.<p>1) The user experience is mostly only bad because it&#x27;s not clear whether terminals accept the chips or not. Once everyone has chip cards this will be a nonissue.<p>2) Chip and pin cards in Europe have had serious problems with attacks that make it possible to use a small device between the card and terminal to use stolen cards without knowing the pin, making the whole pin system fairly pointless.<p>Chip cards still provide a lot of security, and chip+signature allows restaurants to continue the system where waiters take the card to terminal away from the table.<p>Anyway, in my opinion the bigger issue is that chip cards do nothing to secure internet transactions. This is sort of a shame, but it would require much more effort on the part of the credit card processors, merchants, and banks to fix.
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jalkalmost 9 years ago
I remember the first chip terminals in Denmark as being annoyingly slow. This was probably 5 years ago. Today they are as fast as swiping. Rollout of nfc based cards &#x2F;terminals has been going on for 10 months or so, and those are super snappy, don&#x27;t know about security implications though.
jimrandomhalmost 9 years ago
I live in Massachusetts, and the stores near me have recently switched from accepting swipe cards to using chips (in the same cards). It&#x27;s worse, for silly reasons. With a swipe card, you can swipe any time while the cashier is scanning your items, then after they finish scanning they indicate they&#x27;re done and then it asks you to confirm the result. With a chip card, if you insert the card before the cashier is done scanning, it won&#x27;t work; it&#x27;ll give an error and you have to take it out and reinsert it after they finish. On top of which there&#x27;s also a ~20% read error rate.
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woliveirajralmost 9 years ago
In Brazil, probably all cards have chip and chip+PIN has become universal. It works great:<p>- it&#x27;s as fast as swyping and signing;<p>- there are portable terminals using gsm, so no waiter has to take your card far from you (yes, take a photo of your card from front and back and go shopping online!)<p>- there is competition among the providers: you can stick to the company that will have a smaller fee providing you the equipment.<p>When used my card in travels to the USA, found it funny to have to swype: the magnetic strip is easily damaged (and wouldn&#x27;t work sometimes) and the &quot;signature&quot; on those equipments were laughable, since you sign whatever you want.<p>In Europe, don&#x27;t remember to have swiped my card. But the PIN had some problem (and had the same in the USA with chip+pin): cards can have 4 or 6 digits inn Brazil, but there were room for just 4. Sometimes it works if you type just the first 4, some countries you type the last 4.
kylehotchkissalmost 9 years ago
&quot;Critics have told me that banks opted for a signature versus a PIN code because it saves them large amounts of money by not having to store PIN codes for everyone.&quot;
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