A pin number would reduce the amount of credit card theft, which would save the credit card companies millions. So why don't they make every transaction require a pin like a debit card?
2006-10-25 07:37:00 · 9 answers · asked by photoguy1967 3 in Business & Finance ➔ Personal Finance
You have to look at their side also though. Adding a pin number would probably cost them also. They would have to have pay "employees to go back with everyone and issue them a pin number", they would have to put a new system into place (very costly) to add and use a pin number. Some companies will not choose to spend that much for adding a pin number. They would need to do a cost benefit analysis to see if the pros were cheaper than the cons.
2006-10-25 07:41:20 · answer #1 · answered by Keith Perry 6 · 0⤊ 0⤋
The problem is not the pin number. It is the magnetic strip. If we went to chip&pin card with no strip. Then we would have way less fraud. That requires upgrading are point of sale equipment, atms and websites.
You would use your pin for all in person transaction. Phone and web site merchants you would not give your pin out
I think the RFID (paypass and other card) needs a little more work because of the problem researches found. The researchers found that the data was being transmitted without any encryption.
2006-10-29 00:52:07 · answer #2 · answered by Anonymous · 0⤊ 0⤋
With a debit card the money is taken out of your bank account immediately. With a credit card transaction you are billed later. Further if the computer network of the credit card company senses that the transaction is unusual--let us say you live in Pennsylvania and the card is being used in California--it will contact you by phone to verify the purchase, or if it is an unusual pattern of spending (say, someone buying whiskey who has never done so before) it may even reject the transaction at once. Even so there is plenty of fraud, although the credit card companies train merchants to recognize possible fraudsters and may refuse to pay them if they were provably careless. But I suspect that if they make credit card transactions difficult (some customers may consider a PIN irksome) their business will diminish. Besides they carry ample insurance to cover fraud, of which they assume a certain amount each year.
2006-10-25 07:53:21 · answer #3 · answered by tirumalai 4 · 0⤊ 0⤋
Whoa, whoa, whoa, back it up. Credit card theft cost is largely borne by the vendors. I.e., merchandise bought on the card is paid for, not by the credit card company, but by the company that sold it. So the credit card company only has to pay for issuing a new card. So they aren't as motivated to solve this problem as you think.
A PIN would require a big infrastructure upgrade. On the other hand, they already have a PIN: it's called the CVV2, the three digit (MC/Visa/Discover) number printed on the back of the card.
2006-10-25 07:48:26 · answer #4 · answered by ? 4 · 0⤊ 0⤋
These people can find out your pin number too. I had my identity stolen a few years ago and it was with my debit card, so obviously having a pin won't help that much. Also if you are paying with a debit card you can say "credit" and then you don't need to enter your pin number. I don't think having a pin number will help much at all because these people have ways to get that information.
2006-10-25 07:40:16 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I have noticed recently at least at gas stations that they require you to enter your zip code. I guess the idea is if someone stole your card then they hopefully wouldn't know the zip code of where you live. Secondly, for online purchases you do have to enter the security code that is on the back of the card preventing someone from using your number, since they have to have the card to find the security code. Also in person cashiers should check your ID to make sure that you are the owner of the card.
2006-10-25 07:45:26 · answer #6 · answered by ravendark_82 2 · 0⤊ 0⤋
Slows things down. Besides, they do sometimes verify your transactions by having you call in first if they seem out of ordinary. Also, this isn't an option in every case. How many phone terminals are outside a gasoline pump for example? Most people seem to use their CC's for gasoline purchases. Would you want to have to call in each time you got gas? Or have someone call you? Isn't Big Brother big enough? LOL
2006-10-25 07:39:34 · answer #7 · answered by MJ 4 · 0⤊ 0⤋
That's a nice idea. They've implemented that security code ID on the back of the card, but that's easily taken advantage of. Hopefully they'll come up something better soon.
2006-10-25 07:40:53 · answer #8 · answered by Lauren 4 · 0⤊ 0⤋
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2006-10-27 00:23:08 · answer #9 · answered by Anonymous · 0⤊ 0⤋
good question . . . they should
2006-10-25 07:38:05 · answer #10 · answered by Anonymous · 0⤊ 0⤋