interesting article

Discussion in 'Credit Talk' started by Momof3, May 22, 2001.

  1. Momof3

    Momof3 Well-Known Member

  2. steve

    steve Well-Known Member

    Looks like Cap1 Gold may be fraud proof.
  3. cosjef

    cosjef Well-Known Member

    Why are they "fraud proof"?
  4. Nave

    Nave Well-Known Member

    Fraud proof because of a $200 limit :)
  5. Donna

    Donna Well-Known Member

    Interesting article, Mom, I'm glad you posted the link.

    You know, I always feel a bit apprehensive when, we're at a restaurant, and the waiter brings the check, often in a leather folder, expecting payment, either in the form of cash or a credit card. Sometimes, when I've slipped my credit card in there, it's been gone an awfully long time and the waiter will come back with an apoligy for the delay, explaining things were awfully busy, which is probably the case.

    Anyway, I don't like to be separated from my credit card. It just isn't wise and the article you just shared fueled my anxiety about this.

    My CapOne cards are not fraud proof, I'm afraid. One has a $4000 limit and the other, $3000. Certainly, I wouldn't want anyone cloning those or any of my other cards.

    Nine times out of ten, it's probably safe and just fine to hand your credit card to a waiter at a restaurant. But there's always that tenth time.

  6. Nave

    Nave Well-Known Member

    I fully understand your feelings here. 4 or 5 years ago when I was devising secure servers that take credit card transactions over the web we constantly had to battle people that would have misgivings about their customers using their credit card over the web because of how "unsafe" it was ... I was mystified by the fact that people could have these mis-conceptions ... that somehow giving their credit card to a waiter was "safer" than charging on a secure website.

    In fact if you are using your credit card on the web to a "reputable" company, verified some third party trusted agent (like verisign), your transaction is FAR safer than handing your card off to a waiter where may disappear for 10 minutes. Due in part to the fraud or tampering-proof techniques, but mostly due to the lack of human intervention in the online transaction.

    Makes a lot of sense to get one of these chip protected cards if you feel unsafe giving your card to a waiter or anywhere you hand my card to someone. Maybe you can eat out in peace again Donna :)

    Interesting article mom, thanks for posting it.

  7. Donna

    Donna Well-Known Member

    Nice post, Dave.

    The question you raise is interesting. Is it safer to use your credit card online or to hand it to a waiter?

    Frankly, I've done lots of online ordering...more than I care to 'fess up to....did almost all of my Christmas shopping that way last year...and I've never really felt uncomfortable typing in my creditcard info to make a purchase. And the reason is probably as you suggest, less human intervention. Yes, I know the hackers are out there but I've never had a problem and I always use a card that offers good protection just in case something should go wrong.

    Generally, when I make a credit card purchase online, the payment is immediately processed, my card is approved and a receipt, issued. That gives me a sense of security...maybe it's false...but, as I've said, I've never had a problem with an online purchase.

    On the other hand, when you're at a restaurant and you're asked to hand your credit card to the waiter, it's gone for several minutes. During that time, anything could happen and it may not be the waiter's fault. Another restaurant worker could snag the info from your card.

    Generally, I'm not a person who is paranoid but this has always bothered me a little. Getting a card with a smart chip, as you suggest, is probably a good idea.

  8. marci

    marci Well-Known Member

    Good points, all...

    Donna - the thing that gets me is the restaurants/stores who print out receipts complete with the full account number, the expiration date and full name of the person on the card.

    To me, that is asking for fraud via internet purchases, unless somehow the purchase doesn't go through until the billing address is verified.
  9. Nave

    Nave Well-Known Member

    You know thinking about these "smart chip" cards, I realized that in order to work they have to have some kind of new machine to read and send the information back that verifies the chip is "in" the card and the chip is "valid".

    How many merchants are adopting these new readers? Does anyone with a "smart chip" card have experience with the security features? or is it a thing of the future?

  10. Sorin

    Sorin Well-Known Member

    In these days, having the name, expiration and card no. is not enough for an online purchase. They verify the billing address also. Besides, you can use a card that offers 100% online fraud protection. At least three of my cards do that (Citi Platinum select, Discover Platinum, Amex Blue).

    But as you said, it makes me uncomfortable also...
  11. jzilla

    jzilla Well-Known Member

    Where I work, the card reader is owned by the bank and we lease it from them. If that bank wants the new card readers, we get it. We don't have a lot of say-so. I think this is true of most places that accept credit cards.
  12. Nave

    Nave Well-Known Member

    Not really, there are many XON machines (the things that read the credit card info and send to a verification company for approval). For instance restaurants often have computers (like Micros - you know with those touch screens), and often they have "card swipers" built in to them that sends and processes your transaction ... Gas stations have them built into pumps.... all the ATM's would have to be updated... credit card phones at get the picture...

    These readers need to send the information that a "smart chip" card is used and must then have some new capabilities that verify the chip. That technology is not in every gas pump in Hatch Utah I would imagine, least not yet.

    Even if the banks (or one company) ran all the card reader technology and were updating them all at once it would take many years to update every machine. But there is not one company, there are many thousands.

  13. steve

    steve Well-Known Member

    I think a simpler solution for the restaurant problem would be to require all restaurants to have designated card swiping areas where you go with the waiter after your meal and he swipes your card in front of you and you get your receipt (just like the Pizza Hut takeout area). This would reduce fraud a lot here and especially in Europe.

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