Chip & PIN cards coming from Chase!

Discussion in 'Other Credit Card Programs' started by LETTERBOY, Feb 27, 2014.  |  Print Topic

  1. LETTERBOY
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    LETTERBOY Gold Member

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  2. MSYgirl

    MSYgirl Gold Member

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  3. Laptop Nomad

    Laptop Nomad Silver Member

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    I wish they would make the United card chip and pin. They should make all travel cards like airlines,hotels,and a few select cards chip and pin.
     
  4. LETTERBOY
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    LETTERBOY Gold Member

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    If they're going to Chip & PIN, I can see why they'd do it for cards that are currently EMV, rather than for cards that aren't. Presumably there's less behind the scenes work to make a Chip & Sig card into a Chip & PIN card, since they've already done some of the work on those cards. Thus, they could probably get them out faster than they could if they made a non-EMV card into a Chip & PIN.

    Having said that, United cards are the only airline cards without EMV, so I suspect they'll be getting it eventually (I don't count the US Barcaly card, since that'll go away eventually).
     
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  5. SuperKirby

    SuperKirby Gold Member

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    The Walmart I've been going to for over a year is now forcing me to use my Chip & Signature CSP 100% of the time now. The swipes won't even work anymore!

    Cashier said they changed the system because of the Target breach. Not exactly sure what happened though.
     
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  6. sriracha

    sriracha Silver Member

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    there has got to be a better alternative than this chip + pin nonsense... this is like a telecom operator running a 2.5G network buying 3G equipment. Shoot for LTE and beyond
     
  7. Counsellor
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    Counsellor Gold Member

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    I do quite a bit of travel outside the U.S., and have never had a problem of acceptance of a chip + signature card. I have been rejected on a plain magstrip card, but am not sure whether that was for legitimate reasons or just because the young clerk hadn't seen one of those and was uncertain about a card without a chip being legitimate.
     
  8. jbcarioca
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    jbcarioca Gold Member

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    In nearly the whole world the chip+pin uses an online encrypted pin database that is very secure. Fraud in a number of countries that was endemic prior to adoption of that standard almost stopped (think Nigeria, Malaysia, Italy and cards issued from the Uk and lots of other countries). After the chip+pin introduction that fraud almost evaporated. It now is concentrated towards the US due to the ancient 1950's magstripe technology that is so easy to defeat. No doubt, better technologies will come, but the infrastructure and installed base of alternatives makes that a daunting task. Thus I must dispute the word "nonsense"

    Gary has said he dislikes chip+pin because of needing to memorise new numbers. Actually few countries do not allow a user choice on PIN. Several large issuers in France do not have user choice (but then they also still have an offline pin database system) but that is the only country I know where that is the case.

    The big costs and time are to set up the large online database support required for the pin logic. The chip is costly on an individual card basis (roughly four times the all in cost per card for a chip card vs non chip card) but has minimal infrastructure costs from an issuer perspective. Frankly, a chip+signature offers no material security benefit other than cachet. chip+pin is another matter. Throughout the world the majority of automated attendants (fuel, vending machines, etc) will not accept non-chip+pin cards, other than in the US, that is. Thus, anybody who wants a decent fuel price in France or Italy, for example, is largely out of luck because the cheapest price and widest availability in off-hours is from automated attendants that require chip+pin. The same is true for some public transit and many non-tourist retailers.

    On the other hand, the old-fashioned US cards will work perfectly well in airlines, hotels (most of them and all chains AFAIK) and many other places. They also will work perfectly well in countries that have been slow to adopt chip+pin (Russia, Jamaica) and US boxer countries like Mexico, Canada and the Caribbean. For the most part they are also accepted in Brazil, Chile and Argentina which have local brands that are non-EMV. On balance, I don't think chip+pin matters much to the vast majority of US card consumers, although it is of major importance to a handful of high-value consumers like many of us.

    The huge acceleration of card fraud in the US is driving the switch, since the stolen data will not work for chip+pin when the full online pin database is used. It still is taking time because in the US, unique in major card issuing countries, the slightly arcane methods used to manage merchant and issuer arrangements make the merchant financial commitments for complete acceptance a major impediment. So long as there are a large number of non-compliant merchants reversion to non-authrenticated pin will continue and the fraud will continue, albeit at higher cost to merchants, merchant processors and issuers. All of this probably means we'll not see full adoption in the US until 2017 or so, if then.

    NOTE: Just because I say this and think it is all true does not necessarily make it so. If you care, do your own research too. A decent recent statement on the subject, with which I largely agree, is here:
    http://www.banktech.com/risk-management/banks-and-retailers-face-off-over-target/240165588
     
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  9. milchap
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    milchap Gold Member

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    I recently came home from a vacation in Florida and Texas. I was amazed that chip and pin were not in use in the USA. I had not signed a credit card receipt in ages,
     
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  10. blackjack-21

    blackjack-21 Gold Member

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    Seem to be slowly rolling out the chip & pin here in Canada as more and more retailers are having you swipe and enter a pin. Some hiccups at a few merchants at first, but now working more often then not.
     
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