Smart Cards Coming to U.S.

Sep 2, 2014 by

The Target hack, the Russian hack, the Michael’s hack, the just unfolding JP Morgan hack—do you feel like me that the bad guys are winning the fraud war? So far rampant fraud seems mostly to impact consumers indirectly—through higher prices and fees to offset corporate costs of dealing with fraud—but I wonder how long it’ll be until consumers take a huge, direct hit. What if a few billion dollars disappeared from JP Morgan customers’ accounts one night? Would JP Morgan make these customers whole? Would its insurer? Would the government? It goes without saying that a stable of attorneys would get rich(er) litigating the matter for a decade or two, but other than that, I couldn’t predict the consequences of such an event. But I do believe something like this will happen sooner or later, probably sooner.

Will “Smart” Credit Cards Help?

We’ve been using a chip-embedded credit card issued by our large Canadian bank for several years now. U.S. card issuers are finally catching up, spurred by a congressionally mandated deadline. The nifty infographic below explains the technology and includes some interesting background.

One benefit to card issuers of the new technology: evidently, if a charge is made with a chip-embedded card and the holder’s PIN is used to authorize, card issuers are claiming fraud is impossible and holding cardholders responsible for all such charges. Read “Card Fraud Blame Shift” to learn more.

 

Smart Cards

Do You Have a Smart Card?

Has your old magnetic stripe card been replace with a smart card yet? If so, what do you think of it? Any hassles using it?

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