Comment 2T11 Re: Both magstripe and chip/pin


The golden age of credit card fraud is drawing to a close


Both magstripe and chip/pin (Score: 1)

by on 2014-09-29 02:48 (#2T05)

Here in New Zealand we've had the Chip 'n pin for a while, our POS terminals handle both magstripe for Eftpos/older credit cards and the chip. there's even circumstances where you can use the magstripe on the chip/pin card. I received notification the other day that my bank was replacing my eftpos card with a chip/pin debit card so will use both magstripe or chip and I can shop online with my own money... not too sure if I'm cool with that. I dont like the idea of the NFC (paywave) part of the card, going to line my wallet with tinfoil (real tin, never trust the aluminium junk!) when it arrives... if someone doesn't steal it from my mailbox first.

Re: Both magstripe and chip/pin (Score: 1)

by Anonymous Coward on 2014-09-29 14:29 (#2T0G)

Wow, I thought contactless payment was dead. It's almost never used in the US, so they don't issue many cards with it anymore. There are quite a few wallets out there with shielding built in if you want to be paranoid without the crazy looks. Search for "RFID Wallet".

Re: Both magstripe and chip/pin (Score: 1)

by on 2014-09-29 20:57 (#2T0H)

Really, that's interesting it's not used in the US, I wonder why ours are pushing it?

Re: Both magstripe and chip/pin (Score: 1)

by on 2014-09-30 13:26 (#2T11)

Because it's faster, cheaper, and generally more effortless than any of the other options. Chip+pin is secure but takes longer, cash involves a lot more overhead.

Retailers like it because:
  • It saves money. With self-checkouts everywhere, the biggest maintenance you have to do on those machines is restocking change. On a standard checkout, using a card is about as fast as using cash in most instances.
  • Effortless payment. You don't have to count out and hand over cash, you don't even have to verify the number and type in a pin (for purchase under $100 here). You just wave your card over the receiver, grab your stuff, and go. Retailers like you to be less conscious of how much you're spending.
People are fine with it for similar reasons. Cash requires planning and overhead (I recently dumped a 30kg bucket of coins at the bank). Card+pin can be fiddly or annoying if you're just buying a sandwich. Contactless options are fast and convenient for small everyday purchases.
They also pass a test that eftpos/chip+pin dont: You can quickly pay for a few drinks at a busy pub. It's hard to explain how big a deal that is, but it's something credit cards never conquered. Most pubs here include an ATM so you can turn your inconvenient card into convenient cash before you order anything.

I personally make a rule of using cash when reasonable possible. I'm uncomfortable with having one piece of plastic linked to all my purchases in easily-searchable databases...but I understand the appeal completely. Eventually I'll probably have to go over to it, I just hope there'll be an easy option that still includes some anonymity.

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