Credit card Fraud

[mmtripoli@earthlink.net]

North America is switching to the next generation of cards that use similar technology as SIM cards in cell phones. This will greatly reduce this type of fraud. Europe, who has been using these cards for awhile now does not have the level of fraud we have in North America. Why the banks didn't move to this technology sooner is beyond me.

We noticed this when we were deployed to Europe in 2012-2013. The parking garage pay machines and other automated pay kiosks would not take our North American CC's because they didn't contain the chip. When we asked at the German bank, we were told all about them and how much fraud it reduces. Made us ask "why not in the US?" We were told the technology is expensive and that US CC companies were slow to implement them because of the costs involved. Not sure how much but if we can get $10 phone chips at digicel, it would seem that it can't be THAT more expensive. This is not my area of expertise so anyone who has the answer - please let me know!

[ESparks451]

I believe most of the cost is associated at the retail level. Requiring retailers to update there machines and processing capabilities.

[Lido]

Visa has put it on most all of their cards already. It is up to the stores/merchants to offer a system to pay that way. Many have it already like Wal-Mart, some McDonalds etc. What your bank does not tell you is that you have the right to refuse this technology. Watch a video and see why it is so dangerous to have.

"There is a way to protect blink cards from giving out their information to unauthorized terminals, either accidentally or due to criminal activity. If the card is placed in a sleeve lined with metal, it will not function. If contactless credit cards become popular, expect to see "RFID blocking" wallets and purses on the market."

http://www.popularmechanics.com/tech...how-to/4206464

Respectfully,
Lido

[Kevin, PA]

Lido, I think you may be confusing RFID technology and Smart Card technology. RFID technology has been available and allows for swipe-less transactions (Hold your card to a reader). Smart card technology uses encryption information and other data that is stored in memory on the card (just like a SIM card). The smart card technology does not transmit any data at all. It simply replaces the magnetic strip used in today's cards with a "smart chip" with a small amount of storage and the ability to process a small amount of data (think SIM). Here's a little more on the subject:

Smart Cards

*The "smart" credit card is an innovative application that involves all aspects of cryptography (secret codes), not just the authentication. A smart card has a microprocessor built into the card itself. Cryptography is essential to the functioning of these cards in several ways:

• The user must corroborate his identity to the card each time a transaction is made, in much the same way that a PIN is used with an ATM.
• The card and the card reader execute a sequence of encrypted sign/countersign-like exchanges to verify that each is dealing with a legitimate counterpart.
• Once this has been established, the transaction itself is carried out in encrypted form to prevent anyone, including the cardholder or the merchant whose card reader is involved, from "eavesdropping" on the exchange and later impersonating either party to defraud the system.

*This elaborate protocol is conducted in such a way that it is invisible to the user, except for the necessity of entering a PIN to begin the transaction.

[Seveen]

someone used my card in Jamaica and i was not on the island and hadn't been on the island in months and didn't take or use that credit card in Jamaica - ever

[dash]

someone used my card in Jamaica and i was not on the island and hadn't been on the island in months and didn't take or use that credit card in Jamaica - ever

Seveen it's global. I was working in Poland and my card was used in Vegas.

[Rob]

Old Vegas used to rock..... then they stopped driving on Fremont..... (grin)

[booger]

ORC groups(organized retail crime) are a HUGE PROBLEM and it only continues to get worse. The pin technology used across Europe is the next step in the fight, however it is not fool proof either. Having to deal with chargebacks on a regular basis I can say that American Express is the best bet if you are a consumer. They have strict protocol and if it is not followed the merchant takes the hit. Problem is, a lot of places do not accept American Express, for that reason as well as it is the highest cost of tender amongst all the major players.

While all credit card companies will support you with fraudulent transactions, American Express has your back without fail.

disclaimer (no, I do not work in the financial sector)

[Olivia]

Too bad there's not a way to have photos on credit cards - like a driver's license. It's rare to have clerks check for ID anymore (am always happy when they ask for proof of ID even when I make a small purchase). It would be really hard I would think to use a "fake" or stolen credit card if one's picture had to be a match.

[STRIPER]

Might I add cash is king,I'm a small retail, delivery business,with a what I call fair amount of walk in business partner.The commercials we have/ had here in the states implies how fast c.c. Purchases are,man I can ring up easily 3 cash sales in the time it takes to do one c.c. It doesn't cost me a dime! Cash allows me to better keep my cost down,seems better for all ,just my 2(cash) cents worth,I've had no problem using cash(carefully) in jamaica ,use good sense where ever you are!