FlyerTalk Forums - View Single Post - USA EMV cards: Availability, Q&A (Chip & PIN -or- Chip & Signature) [2012-2015]
Old Mar 26, 2014, 3:12 pm
  #3726  
LoneTree
 
Join Date: Jul 2009
Location: KWI
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Originally Posted by tmiw
Originally Posted by othermike27
Yep, that would get it! This guy is answering a question that nobody asked (nobody in this forum, anyway), and that really doesn't matter all that much for U.S. consumers. We have the protection of a maximum $50 liability in instances of credit card fraud, and that is reduced to $0 liability by competitive pressures in the market - a situation that has been stable for the last several years, and is likely to continue for awhile. So, the consumer is not really threatened much by credit card fraud - it's a nuisance, but it's not hard to deal with unless you just aren't paying attention to your financial affairs.

25 years ago, I had both my cards compromised (only had 2 then) the same month, likely my own carelessness. That experience was really quite comforting - cards replaced immediately, no liability for me, and no lasting issues. The system worked to protect my interests! ^^

No further credit card fraud issues since then until last Sunday, when I got a text message saying one of my cards had just been used to make a bogus foreign transaction - one of several alerts that users can set up, as I'm sure many of you have done. Within 15 minutes of receiving that text, the card is cancelled, and a new one is on the way. Only hassle for me is to switch around the auto-pay arrangements I had set up on the old card. That's a nuisance, but not a financial calamity for me. And because the card issuer (Chase) is smart enough to offer a variety of fraud alerts to card holders and I have enabled them, their liability is only that one $15 bogus charge. Again, the consumer (me) is protected just like it's supposed to work. ^^

So, am I scared to use my credit cards? Heck no. Am I going back to all cash? No way. The Gartner guy is just doing what consultants do - tossing off opinions on stuff. (I can say this because I'm a consultant myself, but not in this field. ) Now, let's get out there and charge some stuff!
I have seen concerns though that chip and PIN is the first step towards zero liability going away. "You used your PIN, so obviously it was you who made the charge" type of thing. Wouldn't matter what the law said then.
The liability law is pretty agnostic on what verification method is used. It doesn't specifically say only signature transactions are covered for instance. The banks need to positively prove it was you who used the card in order to establish liability. A PIN does not meet this burden.

More to the point, even if the law weren't in place I don't believe banks would want to do this. They want people to freely use credit without fear.
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