Tech

Chip and Pin

On the way home yesterday I finally made my first Chip and PIN transaction.

Generally speaking I like the system. However I'm disappointed that the only people who really win are the banks. The technology is just one piece of the Chip and PIN story. The more important element is the shift in liability. In the past liability for fraudulent card use lay pretty much with all parties (card holder, merchant and bank). As I understand it the liability now sits pretty firmly with the merchant and the card holder. The bank gets away free.

The technology (the Chip and the PIN) exists just to support this shift. It gives merchants a stronger way of validating the cardholder. But there's nothing to protect customer from unscrupulous 'merchants'.

There's no longer any need to practise forging signatures. If they know my PIN, anyone can use my card without my permission and without question.

Think about this: if today criminal 'merchants' are savvy enough to skim a card and clone it (perhaps you're paying for a bill at a restaurant), then surely they're clever enough to knock up a fake PIN pad that just records what you type. It's then just a matter of obtaining your card as you walk out the door.

Perhaps I'm being paranoid. Perhaps I'll chill out with time. But for now I'm very careful about where I use my PIN - I need to know that the device I'm using is valid. (It's a shame there's nothing to help me do this.)

Chip and PIN will eliminate card signature crime but it won't eliminate the criminals. Like the cards they'll just get smarter.