MasterCard and Visa will transition to PIN-based credit cards late next year

[Shawn Knight]

You may not realize this but the United States is the last major market in the world that requires credit card owners to sign their name to authorize a face-to-face transaction. That’ll soon be changing, however, as both MasterCard and Visa are scheduled to do away with the archaic method starting late next year.

Once the transition takes place in October 2015, credit card customers will instead insert their cards into a slot at a payment kiosk and enter a PIN number. The new cards will contain a microchip that replaces the magnetic strip on today’s cards, a feature that is vulnerable to hackers.

It may be a bit puzzling to hear that it’s taken this long for the US to catch up to the rest of the world, especially when you consider American’s are responsible for about 25 percent of all credit card transactions. But as MasterCard’s Carolyn Balfany recently told the Wall Street Journal, there’s good reason why the US hasn’t yet migrated to the new payment system.

Many markets moved to the new system to combat high levels of fraud while others that struggled with robust telephone networks liked the appeal of being able to process transactions offline. Neither of these were driving factors in America, at least not until now.

As other markets became more secure, criminals moved their operations to the US where credit cards are less secure. The low level of security is one of the main reasons that nearly half of the world’s credit card fraud now takes place in the US.

Permalink to story.

https://www.techspot.com/news/55603-mastercard-and-visa-will-transition-to-pin-based-credit-cards-late-next-year.html

 

[tipstir]

Before you know they'll implant CC code chip into us. Then we would wave our palm of either of our hands or fingers to pay for things. Plastic card will be not needed any longer.

 

[cliffordcooley]

Before you know they'll implant CC code chip into us. Then we would wave our palm of either of our hands or fingers to pay for things. Plastic card will be not needed any longer.

Then identity theft would be possible by palm reading. lol

 

[tipstir]

Then identity theft would be possible by palm reading. lol

I am sure it will be encrypted by then. LOL

 

[MilwaukeeMike]

It's about time we got on this bandwagon. Now all we need to do is follow the rest of the world and get rid of the penny.

 

[Guest]

The headline should read "the US will finally adopt chip & pin technology". This, more secure, technology has been the standard in the rest of the world for a long time.

 

[p51d007]

The other part of the problem is the visa/mastercard/banks don't want to spend the money to replace the zillions of card swipe POS machines. Also, the stores that have card swipe cash registers. I'm sure if the banks push it, they could force the retailer to buy new machines.

 

[Bubbajim]

You guys don't use this yet? Jeez! Almost 9 years since this came to the UK. Also, sorry to be picky but the "PIN Number" tautology really winds me up, its just a "PIN".

 

[Skidmarksdeluxe]

You all use credit cards??? Gee whizz whatever happened to bartering?

 

[captaincranky]

You all use credit cards??? Gee whizz whatever happened to bartering?

The barter system only works, if the "currency", is worth something in the first place. Other than that, most of us can't speak Chinese.

Or perhaps, as in case of the US, we just tell the Chinese, "we'll catch you later for those", and it isn't necessary to bring anything to trade.......

 

[Guest]

You all use credit cards??? Gee whizz whatever happened to bartering?

The barter system only works, if the "currency", is worth something in the first place. Other than that, most of us can't speak Chinese.
Or perhaps, as in case of the US, we just tell the Chinese, "we'll catch you later for those", and it isn't necessary to bring anything to trade.......

Not to mention bartering is useless if you need to purchase items online or pay monthly cell phone bill.

 

[captaincranky]

Not to mention bartering is useless if you need to purchase items online or pay monthly cell phone bill.

Sorry to disappoint, but you're simply not getting any traction with "cell phone bills", in connection with, "the barter system", with me.

As far as I"m concerned, even having a cell phone is pretty much a character flaw.

The government prints welfare and SSI checks, which are in turn, used by recipients to purchase cell phone contracts. After which, they mindlessly and incessantly , run their mouths about nothing in particular, except when call waiting tells them their "man", has gotten the day's supply of heroin in. Then it's, "off to the shooting gallery".

If you think that's too harsh, consider this. An economy needs a basis in manufacturing, raw materials, and farming, to actually be viable.

So, any government can't summarily print currency, owe the money to itself, and then have its citizens simply hand it to the telecoms, or the Chinese, and still be viable. That's a closed, service based loop, with nothing of any value being in the cycle

I figure this is why people are stupid enough to assess value to "bitcoin". After all, if you summarily plant bits and bytes on a computer HDD somewhere, then start a rumor that it's worth something, then it should be, right?

You're living in a house of cards people, smarten up!

And no Virginia, there's no Santa Clause, now stop asking stupid questions.

 

[GhostRyder]

Cool enough, took the U.S. long enough. I use my Debit card for most purchases as it is because Cash is much more easily stolen or lost, I can't even count how many times I have found case in my washing machine or just wondered what happened to the 10 I had in my pocket. Sadly I feel cards are better than cold hard cash even though in all likelihood if one thing was going to go under it would be the credit card company/bank more than the currency.

 

[tipstir]

My bank give me 2% back if I use my DC Visa as CC. Which I do. I still carry some cash with me. Some places don't use DC or CC and your force to use CS.

 

[misor]

You all use credit cards??? Gee whizz whatever happened to bartering?

so my fresh harvested sea urchins for your shoes?

 

[tipstir]

I use to have 16 CC cards all types silver, gold, platinum and titanium. I got rid of them all. Just use DC when you need to buy things use it CC if you have enough funds in your bank and if the bank allows you to do this transaction. CC to me are dangerous to use today. I am not using them ever again. Plus those who run those type of card charge any high annual percentage rate APR they can get away with. Use to be 4%, then 9%, out of control.

Technically speaking you borrowing loan money to pay for items you are trying to get. There is someone in the middle watching these transactions. They know how you spend and what you spend on. They know where you live, they know where you work, they know everything about you. Once you swipe the card the processing goes into effect.

It's such a distraction for everyone to use them and not know what's the out come when you do. If you pay it off each month they who run the racket behind the process don't want you to do that. They want you to pay it off like a loan with high interest. So they can milk you for what you have.

Cash and DC you don't have that racket. DC-CC you still don't have to worry about APR. Plus like my back gives me bank 2%. Some banks 1% or 5%. Some CU give you up to over what you have in the bank. Say you had $100,000 in the back your limit would go as high or $50,000. CU is better than a regular bank they monitor all transaction an call you up to say Mr. Tipstir we have spotted someone using your card at such and so place in such and so state. Is that you. YES!

 

[misor]

Is debit card same as a prepaid credit card?
this type of credit card (powered by visa or mastercard) is already available in the Philippines and work this way:
the user deposits money in the said account with no interest.
the user can then purchase anything covered by the funds.
one bank allows up to 100,000 pesos to cover the prepaid credit card while another allow only 20,000 pesos/month/person regardless of number of prepaid accounts.

 

[tipstir]

Debit comes out right away from your bank they here charge a small fee. So to wave that fee you use the Debit as Credit (as you put it a Prepaid Credit Card). Regular Credit you own the loan you just started-up with compounded interest until you get the bill. If don't pay the bill in full then the compounded interest grows even larger each month the balance if it's not paid in full yet?

 

[Guest]

Now all you Americans need to do is sort out your bizarre date format. Only the USA puts the month first .... totally weird

 

[cliffordcooley]

Now all you Americans need to do is sort out your bizarre date format. Only the USA puts the month first .... totally weird

Tell me about it, the year should be first.

 

[tipstir]

2.11.14 month, date and year nothing wrong with it that format. Others mix up makes it harder to figure out this way is simple.