Chase Bank Now Issuing Microchip Debit Cards

CommanderFrank

CommanderFrank

Cat Can't Scratch It
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Microchips are the wave of the future and Chase Bank is cashing in on the trend a little early. Beginning this week, Chase Bank began offering a debit card that utilizes a microchip that will eventually totally replace the magnetic stripe.

Chase is currently issuing cards with both chips and the magnetic stripe, so your in-store experience won’t change. Over time, as banks like Chase move away from the magnetic stripes, you’ll no longer swipe your card.
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Inserting and removing is a totally different experience than swiping. I hope the people can adapt to these impending changes.

As usual with things in 'Murica, I was issued a couple of chip cards that still require a signature. I had to seek out a chip and pin card that I was sure would work universally.
 
The majority of credit card shenanigans of late is about hijacking information post physical authentication. Not sure the chip does shit except add in laws that have put the merchants on the hook for the theft instead of the banks.
 
jpm100 said:
The majority of credit card shenanigans of late is about hijacking information post physical authentication. Not sure the chip does shit except add in laws that have put the merchants on the hook for the theft instead of the banks.
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Oh sure it does shit:

It means that the millions my state capitol just finished spending to replace the coin-op parking meters with magnetic-swipe CC reader meters were wasted....as lots of people predicted.
 
I have a chip card. Talk about pointless. Every time I try to use it like that, it freaks out the lacky at the cash register. And not once have I encountered a POS where the chip feature was enabled, so even when you put it in the slot, it doesn't work because it's disabled in the software.
 
damicatz said:
I have a chip card. Talk about pointless. Every time I try to use it like that, it freaks out the lacky at the cash register. And not once have I encountered a POS where the chip feature was enabled, so even when you put it in the slot, it doesn't work because it's disabled in the software.
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I've encountered exactly one so far. In this machine at least, since the feature was enabled my chipped card couldn't be swiped.
 
Had chip cards for years now in Canada... better than worrying about a stupid stripe working after a while.
 
The transition has to start somewhere. In a couple of years, magnetic swipe machines will be outnumbered by the chip machines. I'm happy to have a card that can do both.
 
As Borgschulze says, they've been around a few years here, and we're years behind the EU and likely Japan.

We had the same issues when they finally enabled the chip readers. For a long time the card readers had them but were not enabled. People wanted to start using them but the cashiers were getting tired of explaining that they didn't work yet. They taped over the chip readers with hand printed signs saying to swipe instead. When they finally enabled them the switch was easy for most, but probably challenging for the impatient. "Insert card or swipe to start" would be the instructions. If your card has a chip and you swiped, the card reader would ask you to insert it instead. After about 3 times of asking, I would imagine the average person would learn.
 
I've received two types of cards from Chase recently during refresh, might be doing a limited rollout. On one account, I got the chip card. On another, old swipe card.
 
kumquat said:
The transition has to start somewhere. In a couple of years, magnetic swipe machines will be outnumbered by the chip machines. I'm happy to have a card that can do both.
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People thought the same thing about non-fossil-fuel engines. Guess what the dominant form of transportation is and how it is powered some 50 years after the first fuel cell car was developed?

I'll be pleasantly surprised if it is only a couple years. You're talking about corporations having to spend money to replace "working" hardware....no corporation ever wants to spend money like that, unless they have a legal gun put to their head.
 
Skripka said:
People thought the same thing about non-fossil-fuel engines. Guess what the dominant form of transportation is and how it is powered some 50 years after the first fuel cell car was developed?

I'll be pleasantly surprised if it is only a couple years. You're talking about corporations having to spend money to replace "working" hardware....no corporation ever wants to spend money like that, unless they have a legal gun put to their head.
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Large retailers like Target, Home Depot, and Walmart are going to move pretty quickly to these machines. In fact they're already moving to them. One of the main reasons this is happening now is that Target (and others) got seriously burned in recent years as a direct result of how insecure magnetic swipe terminals and cards are.

There's a significant business incentive to move to them: no one wants to be the next Target or Home Depot.

This is not at all like car engines and gasoline, which require massive tradeoffs and investment by consumers and businesses alike. Once the top 5 or top 10 US retailers are fully transitioned, and most people have chip cards, then the majority of transactions will be chip-based.

I expect that in two years' time, most debit and credit card retail transactions in the US will be chip instead of mag-swipe.
 
Borgschulze said:
Had chip cards for years now in Canada... better than worrying about a stupid stripe working after a while.
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Exactly this. We've been using chip-based debit (and of course credit) cards for.. about a decade? Maybe a bit less.

They're fantastic. Quick, painless, and they don't die like mag strips do. They're also encrypted, so you can't just buy a device for $100 that'll read the card's contents like you can with mag stripe readers.

All in all, a very nice system, and finally I'll be able to actually use the chip in my card when I'm in Montana.
 
kumquat said:
Large retailers like Target, Home Depot, and Walmart are going to move pretty quickly to these machines. In fact they're already moving to them. One of the main reasons this is happening now is that Target (and others) got seriously burned in recent years as a direct result of how insecure magnetic swipe terminals and cards are.

There's a significant business incentive to move to them: no one wants to be the next Target or Home Depot.

This is not at all like car engines and gasoline, which require massive tradeoffs and investment by consumers and businesses alike. Once the top 5 or top 10 US retailers are fully transitioned, and most people have chip cards, then the majority of transactions will be chip-based.

I expect that in two years' time, most debit and credit card retail transactions in the US will be chip instead of mag-swipe.
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How exactly did Target or Home Depot get "burned" by insecure magnetic cards? How many people went to jail? How large were the fines issued for blatantly lacking digital security? Oh that's right...they didn't get fined, they didn't go to jail, hell they didn't even have to swallow the lost fraud money. There was no real consequence to them whatsoever than some bad PR, which they mitigated greatly by downplaying the breaches over 12 months. And in the last 2 years alone Target and Home Depot were only 2 out of over a dozen merchants hit, which you probably cannot even name without searching Google. That is how badly merchants get "burned" by CC fraud, you can't even remember most of their names.

We the consumers pay the bill for fraud, it all gets passed to us in the long run...merchants never have to deal with it other than some PR and paperwork.



Hell, I have yet to even see or use an NFC smartphone payment terminal at a retailer in real life.
 
Actually the chip in my main credit card is starting to give me problems. It works all the time at most places, but some machines are fiddly. I have to push it in just right for the chip to be read. I don't know if it my card or dirty machines. Back in the dinosaur age of magnetic stripes, most problems were caused by dirty readers. A cashier once told me that the price for the cleaning kits had jumped and some retailers were weren't willing to pay.

I hope that most American retailers are getting NFC equipped readers with their new chip machines. Don't want them wait another 10 years to transition again.
 
I'm in San Diego and all the Walmart and Home Depot stores use chip readers now.
 
Skripka said:
How exactly did Target or Home Depot get "burned" by insecure magnetic cards? How many people went to jail? How large were the fines issued for blatantly lacking digital security? Oh that's right...they didn't get fined, they didn't go to jail, hell they didn't even have to swallow the lost fraud money. There was no real consequence to them whatsoever than some bad PR, which they mitigated greatly by downplaying the breaches over 12 months.
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Target Profit Falls 46% On Credit Card Breach And The Hits Could Keep On Coming

It also cost the credit card companies a ton of money because they had to send out millions of new cards, deal with lots of real actual fraud and chargebacks, etc. So not only do retailers want to do this, the credit card companies want them to as well. There's a lot of industry pressure behind this.

I'm not really sure what you're arguing. The chipped cards are going out, and all the major retailers are either rolling out or planning to roll out compatible readers. This is happening, right now, and has been proven to be pretty straightforward in Canada, Europe, etc. It's only a (relatively small) matter of time before most transactions are no longer magswipe.
 
And oh by the way, the following retailers are a small sample of those that accept NFC payments, so if you haven't seen any in real life you either don't know what they look like (this is most likely) or you don't shop at national retailers:

Petco, Staples, Subway, Toys R Us, Whole Foods, Macy's, McD's, OfficeMax, Panera, Champ's. Duane Reade, Foot Locker, GameStop, Meijer, Home Depot, Sunoco, Walgreens.
 
Also, the credit card companies have either implemented, or will implement, a change called a liability shift so that it's the *retailer* who is liable for fraudulent purchases made via magswipe. AmEx, Visa, and Mastercard are all implementing the liability shift this year for point-of-sale terminals and in 2017 for gas stations.

So this is happening. Arguing that it won't is just ignorant.
 
smallmj said:
I hope that most American retailers are getting NFC equipped readers with their new chip machines. Don't want them wait another 10 years to transition again.
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Probably not. NFC will never be required. It's merely a convenience thing. The transition to chip and pin is a PCI compliance thing. The critical aspect of it is that the credit card info is encrypted from the pin pad to the bank.

I work for a national retailer and we are in the middle of the whole chip and pin thing. We have found out that more than half of all retailers in the US will probably not be ready for this October's deadline and for most it will come down to cost of implementing vs liability risk.
 
griffinhart said:
I work for a national retailer and we are in the middle of the whole chip and pin thing. We have found out that more than half of all retailers in the US will probably not be ready for this October's deadline and for most it will come down to cost of implementing vs liability risk.
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The October 1st 2015 date is just a shift in liability if the card the is EMV compliant and the merchant is not, then the merchant becomes liable. It's not really a deadline for having to be EMV compliant. Not to mention most card issuers are still not issuing chip and pin cards, almost all of them are chip and signature except for a select few.
 
This is news? My credit union has been issuing them for a couple of years now. I still haven't been in a single store that used the chip.
 
Used them for years. Annoying as hell to travel to the US where I can only "swipe" my credit card. Most sales terminals in Canada are also NFC enabled, so tap and go also works. Perhaps that will be 2025 for the US...
 
Borgschulze said:
Had chip cards for years now in Canada... better than worrying about a stupid stripe working after a while.
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I have a chip based laundry card that I fill up with cash at the laundromat.

I got errors reading the chipcard a year before my credit card was set to be automatically replaced.

It's just another point of failure and doesn't do anything to improve security. Information is still read by the machine... Whether by stripe or the same info in the chip itself.
 
techrat said:
It's just another point of failure and doesn't do anything to improve security. Information is still read by the machine... Whether by stripe or the same info in the chip itself.
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Yeah, no. The chips are actually much less prone to error and failure than the magnetic strip, and they're much more secure.
 
smallmj said:
Actually the chip in my main credit card is starting to give me problems. It works all the time at most places, but some machines are fiddly. I have to push it in just right for the chip to be read. I don't know if it my card or dirty machines. Back in the dinosaur age of magnetic stripes, most problems were caused by dirty readers. A cashier once told me that the price for the cleaning kits had jumped and some retailers were weren't willing to pay.

I hope that most American retailers are getting NFC equipped readers with their new chip machines. Don't want them wait another 10 years to transition again.
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Contact your credit card issuer, they'll just send you a replacement.

So yeah, we've had the chip and pin here in Canada for nearly 10 years and I remember that they've had them in Europe for even longer. It's amazing how long having 50 independent states with different laws makes any technology roll out. I too hope you get NFC at the same time too, we've had it for a few years in most places and it makes small purchases really easy (there is a $100 limit, at least here).

It doesn't mean much different for most people, assuming you can remember a 4-6 digit pin number. The cards do seem to be less finicky when it comes to being read and it apparently saves the banks money, that being the real reason for it. It's helpful for you too because if someone lifts your wallet they can't use your cards.
 
my replacement Chase card came the other day and has a chip in it.
I have another chase card from years ago with a chip in it and has 2 or 3 curved lines in the logo like a wifi signal, is this the same type?
 
Quix said:
Contact your credit card issuer, they'll just send you a replacement.

So yeah, we've had the chip and pin here in Canada for nearly 10 years and I remember that they've had them in Europe for even longer. It's amazing how long having 50 independent states with different laws makes any technology roll out. I too hope you get NFC at the same time too, we've had it for a few years in most places and it makes small purchases really easy (there is a $100 limit, at least here).

It doesn't mean much different for most people, assuming you can remember a 4-6 digit pin number. The cards do seem to be less finicky when it comes to being read and it apparently saves the banks money, that being the real reason for it. It's helpful for you too because if someone lifts your wallet they can't use your cards.
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I don't think state laws have anything to do with why we don't have chipped cards yet, and AFAIK no laws have changed to create the change we're seeing now.
 
Zepher said:
my replacement Chase card came the other day and has a chip in it.
I have another chase card from years ago with a chip in it and has 2 or 3 curved lines in the logo like a wifi signal, is this the same type?
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Visa Paywave?

payWavecard.jpg


That's NFC payment, like Google Wallet or Mastercard Paypass. Your card has an NFC chip in it.
 
Quix said:
Contact your credit card issuer, they'll just send you a replacement.

So yeah, we've had the chip and pin here in Canada for nearly 10 years and I remember that they've had them in Europe for even longer. It's amazing how long having 50 independent states with different laws makes any technology roll out. I too hope you get NFC at the same time too, we've had it for a few years in most places and it makes small purchases really easy (there is a $100 limit, at least here).

It doesn't mean much different for most people, assuming you can remember a 4-6 digit pin number. The cards do seem to be less finicky when it comes to being read and it apparently saves the banks money, that being the real reason for it. It's helpful for you too because if someone lifts your wallet they can't use your cards.
Click to expand...

kumquat said:
I don't think state laws have anything to do with why we don't have chipped cards yet, and AFAIK no laws have changed to create the change we're seeing now.
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It's more about having 9x the population and a concomitantly larger number of businesses that require new equipment...but the 50 different sets of laws do require more effort when drafting new agreements between card issuers and businesses. I'd call it 80% technical issue and 20% legal issue.
 
chip card is the future ?

Welcome to modern society 15 years ago . It was one of the things that amazed me moving to the states years ago.
Maybe next time GOSH they would update their online banking system security not to be based on just a user password.

Its quite funny that the states being so capitalist has such an obsolete way of handling money,
I had to deliver a void check to setup automatick payment with my waterworks.
i had to PHYSSICAL go to the place. I have never neede do that in my entire life before.
sa that at least 20 years behind still on such a simple task
 
Yeah, the article is selling this as some new thing, but it's just commonplace is like everywhere but USA, good o' land of innovation.
 
I almost thought this article was a joke, been using chip cards here in Canada at all retailers for many years
 
These types of things just make the rest of the world shake there heads.
As others have said we have been using this in Canada for over a decade. I have also been using a tap card for at least 3 years now. Anything under 20 bucks or so I just tap my card on the reader.
I remember arguing with a clerk in the US 8 or 9 years ago who didn't want to accept my CC cause it had some sort of "mod" on it. lmao
We still have stripes on our cards... really though its just so we can cross the boarder and not have to be issued a card from 1970. ;)
 
Went to wal-mart earlier and it told me I couldn't swipe my card and had to insert it. There was no obvious place to insert the card but I found it hidden on the bottom of the keypad which can only be seen if you stick your head under it. After inserting it the thing kept asking me for a pin and would not do anything or even let me cancel even after taking my card out and the woman at self checkout had no idea what to do either.. After a few taking out and reinserting it the thing finally started to do an authorization and I was finally able to finish and leave.
 
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