I've had my MR credit card for almost a year now and so far the only times I have used the chip and signature technology have been in Canada and Europe. While I've seen several retailers in the U.S. with new credit card machines that can read the chip, all of them still use the magnetic strip (I've tried inserting my card in a few of these machines and none of the are programmed to use the chip yet).
Has anyone found a place in the U.S. that allows the use of the chip technology?
(See the Re: Anyone see that the MR Credit Card now has SmartChip Technology? thread from last year for more details about the MR credit card)
I've seen all manner of articles suggesting that chip technology would have prevented this type of a data breach. Here is a link to just one.
I'd love to see things get better sooner rather than later, but it will probably take a few more of these events to get retailers to finally change to the more secure system.
I've heard 2015 is deadline for all CC companies to have chip and pin and also for retailers to use the new machines you refer to. I know Europe was fore running in this as with everything and it will eventually be here as well and very welcomed as far as I'm concerned. I think it will bring a much harder way for fraud when using the card. However, it won't do anything for all those companies that just take your number and 3 digit pin over the phone...or online transactions. The only thing I can say it might do for us is keep people from stealing the credit card itself.
Good point on the online purchases, madmax.
Better security should help prevent against card skimmers which can copy info right off the magnetic strip. Duplicating the chip and its information would be much harder. My understanding is that one of the big delays is that retailers don't want to buy new equipment. I'm sure that's not the only reason.
Having used the technology in Canada and Europe, it makes me wonder why the U.S. is so far behind on this issue. I'm looking forward to it here as well.
Here's a good article I read about it this summer U.S. rolling out chip card technology, ever so slowly
essentially it's because the belief that enough American users didn't care to justify the additional terminal installation costs. Supposedly, we're going to see a rollout next year. Chase provided me with chip cards for both United and Marriott when I headed overseas.
I wrote a comment last summer about Chip cards after I returned from Europe. A few months before departing I contacted Chase to get a MR Chip card because I knew from my previous trip in 2010 that I would be at a great disadvantage if i didn't have one, and I'm so glad I did. While in London and Paris I utilized a lot of kiosks to buy tickets and none of them - not one - accepted magnetic strip cards. While the tableside terminals used in restaurants do accept magnetic strips, the transactions take longer because the waitstaff have to go back to the main terminal to enter some codes.
It's hard for me to believe that the card issuers here in the US are so far behind the technology curve, especially in light that credit card fraud costs the banks $11 billion a year. The issuers blame the slow rollout on merchants, who have to buy totally new equipment, but it seems to me that with losses of $11b, the banks could have shouldered some of those costs in an attempt to get a handle on the rampant fraud.
While I am bullish on Chip cards, they are no panacea. They work great at preventing fraud when a card is handed over for the transaction as they can't be duplicated or used for fraudulent, in-person transactions. However, just like with magnetic strip cards, anyone who gets their hands on someones credit card number can still fraudulently purchase merchandise remotely over the internet. There is presently no fix for that.
Saw this statistic today.
Just 14% of all payment terminals in the U.S. are capable of using chip cards and most of those need a software update to make them useable.
Banks have set an October 2015 deadline for retailers to be using this technology or bear the cost of the fraud (currently absorbed by the banks). Only 21 months to wait.
Thanks for posting this information bejacob. Wonder what the conversion/new equipment costs will be to retailers.
bpelican, I'm sure it will be substantial. Verifone (the largest provider of POS credit card terminals) is looking for quite a boost in sales as retailers convert.
I hope to return to this thread when one of us finds a U.S. retailer that starts using this technology. We'll have to see how soon that happens.
The Diane Rehm show on NPR had a program last week dedicated to this very subject. The consensus from the guests on the panel is that American merchants are not willing to pay for the new terminals required.
This is a completely different approach than Europe, where the governments issued a date for mandatory compliance and now all of Europe is on the CHIP. Say what you want about socialist governments, but sometimes they get the job done.