Why Credit Cards w/ Chips?

[Irvrobinson]

FWIW many vendors already were using encrypted terminals. The major change on this one is Credit Card companies are making vendors that don't use chip terminals liable for any fraud. Your information is still on the card strip, but vendors using it don't get the banks fraud protections.

To be more accurate, the financial entity in the transaction who is least EMV compliant has the fraud coverage responsibility. This was just an incentive to get the merchants to upgrade. If the merchant is EMV compliant the issuing bank still has responsibility.

The only information on the mag strip is what's printed on the card. The chip generates unique transaction identification.

 

[Alex2507]

So now we know Irv's day job: cyber criminal.

 

[Swerd]

Where I work, I've had an ID card with one of those chips for several years. The chip has encrypted info with my photo AND fingerprints, a PIN number, and probably my mother's library card number too. We now have to use that card to enter (and leave) the parking garage, to enter the building, and to log on to the computer network. We frequently have to "refresh the digital electronic credentials" of the card, because it apparently can frequently get corrupted. It's a giant PITA. I imagine soon I'll have to use it just to flush the toilet.

The card also has the magnetic strip on the back. So I have to protect it from unauthorized RFID scanning. I wish I had owned stock in one of those companies that make RFID blocking wallets and neck lanyards!

 

[Bjens]

I've been getting a bunch of these in the mail too. So apparently now I have to buy a RFID blocking wallet, great.

 

[j_garcia]

The chipped cards are NOT ALL NFC.

 

[KEW]

Where I work, I've had an ID card with one of those chips for several years. The chip has encrypted info with my photo AND fingerprints, a PIN number, and probably my mother's library card number too. We now have to use that card to enter (and leave) the parking garage, to enter the building, and to log on to the computer network. We frequently have to "refresh the digital electronic credentials" of the card, because it apparently can frequently get corrupted. It's a giant PITA. I imagine soon I'll have to use it just to flush the toilet.

The card also has the magnetic strip on the back. So I have to protect it from unauthorized RFID scanning. I wish I had owned stock in one of those companies that make RFID blocking wallets and neck lanyards!

So now we know Swerd's day job:

 

[Swerd]

OK, I'm busted. However, I don't wear a black suit. The guys who do have a much lower level clearance.

And our offices and work spaces don't look nearly so cool as in the movies.

 

[jinjuku]

Here is the kicker:

Merchant fees are based on risk. Now that risk is going to go down across the board what do you think is going to happen to the fees us merchants pay?

Give you one guess