Originally Posted by
Daveoc64
I've seen some articles that suggest the United States' apathy towards card fraud has only made the problem worse, and has helped to fund international criminal organisations.
One of the worst problems is the consumer-friendly "Zero Liability" policies, which usually amount to card issuers swallowing losses, rather than issuing chargebacks (which can be costly).
Some criminal organisations run fake online stores, charging low amounts ($10) to American accounts, and as the card issuers never pursue chargebacks, they get to keep all that money and can continue doing it.
In other countries, things are investigated properly, and if the cardholder hasn't done anything wrong, they still won't lose out.
Yes, that would be the expectation.
People in the UK (and I imagine, most of Europe) don't generally consider VAT when working out the cost of anything - it's illegal to advertise products to consumers without VAT included.
There's no need to have anything connected via USB. The card readers mentioned earlier in the thread (for use with online banking) could also be used when buying something online.
A one time use code can be generated using the reader, card and PIN only - no need to connect to anything. That means it's instantly compatible with everything that you can type digits into (so basically any web browser or device!).
As to point 1 you do understand I assume why there is such apathy on the part of American banks to card fraud. The latest figures I have seen show the US payments systems generate such tremendous profits for the banks that fraud losses amount to about $0.13 on every $100 of profit even though the actual dollar figure may seem very high. The banks look on the fraud losses as simplyt part of the costs of doing business. Anybody here who thinks about it for a second will quickly understand that. As some of us have said, that is one of the reasons emv has been so late arriving here. If it were up to the banks, the system in place today would remain for another 30 years. They want to do nothing to discourage people from using their cards. Your card has been compromised sir, so sorry to hear that. Which charges aren't yours? (The vast vast majority of people are honest and won't pull shananigans on this; they would be very easy to pursue so let's assume that's not an issue). Tell me sir, what is the best way to get your new card with a new number to you. You're in Great Britain right now, sir, let us send your new card overnight so you'll have it tomorrow. What is the address of your hotel sir. And remember sir with (name the bank) you have zero liability for fraud (although if you watch some of the Discover commercials it sounds like frog protection).
Only the pressure from some of the types here got the banks to consider issuing emv cards two years ago or so. But even then, at first the cards were only being issued on their premium cards, a good way to get some people to buy into the high annual fee cards but gradually the pressure began mounting. Yes the Target breach helped bring it to fruition as Congress seemed poised to act. But also some pressure, as you note, from the fact that although they would like to believe the US is not part of the world economy, indeed it is and when say the British banks began complaining that their cards were being compromised by visitors to the USA having their information stolen, well I think that helped move to the adoption of emv.
But as has been noted above, the attitude is we don't want to do anything to discourage people from using their cards hence the less secure chip and signature which will become the predominant cvm in the USA to the point that nho bank except one offers a "true" chip and pin card and it doesn't seem any are on the horizon.
Their view point remains that just having the emv chip will, for the time being, drastically decrease the amount of card is present fraud as it is much more difficult to clone an emv compliant card. The only kind of fraud chip and pin will prevent over chip and signature is when the actual card is lost or stolen and in the scheme of things, how big a problem is that?
Like I said, the USA banks have apparently shot their ammunition. Whether or not other countries' banks and merchants will comply is now the question.