For the last few years credit card companies have been pushing the PIN-System instead of signatures. This really screws all of the people who have to use them and exposes them to a lot of risks.
If someone uses your card with your PIN number, you are screwed, you have to pay and it is almost impossible to get your money back. With a signature you were able to ask for proof and if the signature was not correct you could get your money back in most cases.
It is much more difficult to forge a signature than to type in 4 digits in order to authorize the transaction.
Think about all the people who see you typing in your PIN each day... everyone in your local store will think that you are a paranoid guy if you try to cover up all the display with your left hand and try to get your back to everyone in the cue waiting.
But hey, what about all of those cameras recording... Do you really want to change your PIN every day? So, if you forget your card, or they get somehow a hold of it... you are really screwed if you do not notice it immediately. They can spend all the available balance and you cannot argue anything... you are screwed.
Once I was in a night club where I had to pay after each drink... the first time I typed in the code in front of the employee at the table where I was... the second time they did not have the machine with them, and when I wanted to pay they were on their way with my card and I had to stop them. I realized, if they had seen my PIN before, they could have typed in any amount and charged my card in a minute. If you are a bit drunk and do not pay so much attention this could now really have consequences.
It is a serious security risk.
Daily withdraw limits I think should really be used, so that if you get screwed at least not for the entire balance... but on the other side take into account that they can kidnap you and hold you for as long as necessary in order to clean out the whole card. This is done in many countries.
Banks are protected, you are screwed
As the cashless society is been introduced worldwide, one can see who is in the better position... and it is definitely the banks. The best thing one can do is take the card only with you when you really need it. Be aware of how much money you have as a balance. This is the maximum amount you can loose in the worst case. Pay cash wherever possible in order to not let everyone know what your PIN is.
What is your experience or opinion?
imagine the scenario of whole balance getting clearing out oh damm i will freak out at that moment resteemed
Thanks for resteeming! Yeah... this is really a problem...
Thanks for @ mexbit this information.This is very important.
100% like and resteem .
have a great day.
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this is not less than gold of a post amazing valuable content you have provided me this is not going right with all of us !! Resteemed
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@mexbit - oh my goodness, until I read this article I didn't ware about this risk. Thank you very much Sir. Now, I understood the risk while paying via the credit card. very informative article Sir. Therefore, I wish to ReSteem your post.
+W+ [UpVoted & ReSteemed]
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This is a serious security risk as you said and no one bat an eye on this problem why seriously !!!! Resteemed
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looks like i am completely screwed what to do in this situation
upvoted & resteem
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Very useful info and valuable post. thanks for your this posting .
upvote and resteem
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amigo #resteemia at your service
discussion about the real risk that we don't aware & banks always aware. excellent writing @mexbit
ReSteemia
'UpVoted ReSteemed Commented'
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I can't remember the last time my signature on an electronic signature machine actually looked anything like my signature. Plus, I don't actually sign it half the time.
Your argument of being able to see the signature and "prove" that it wasn't yours is flawed. If you lose your credit / debit card and your bank account is drained, you have the obligation to report it stolen to the police (within a short period of time after the incident). Usually you'll know that your card is lost within 24 hours. And you usually know what your last activity was. So if you report it to the police, you're going to likely be just fine.
This article is a bit too pranoid for reality for me. Yes, banks are going to probably hassle you to ensure that you're not trying to defraud them. No, you shouldn't have all of your money connected to a single account / pin.
Just Be Smart. Always hide your PIN number. Do you flash your Social Security Number (or your country's equivalent) all over the place? No, because it's private. And because it's highly valuable. Keep the same level of security for your pin and you'll be fine.
Yeah, you cannot wait for a month in either case, but for example in my Nightclub example, it is really easy to just charge another drink in my absence. Risk for the nightclub is 0 using the PIN, as you do not get a SMS for that charge... in either case I am convinced that the risk with PINs is worse for the customer.
I know in Europe, people don't let restaurant employees (or bartenders) take their credit / debit cards away from the table. All (most) of the Chip Readers are mobile, so they bring the reader to the table for you and you put in your pin / any tip amount yourself, using the Chip Reader.
I think that if the US moves in the same direction as Europe, we should have the same options / Chip Readers here. Europe has been using Chip Readers (with pins) for much longer than the US and have been fairly successful (from what I hear). It's been at least 6+ years that I know of, since my first visit across the Atlantic, and they were using the mobile chip readers for a while before I traveled there.
There isn't a way for you to set up alerts for PIN transactions? That sounds like a great area of opportunity for your bank. I'd send them a suggestion / complaint about that.
Great information.
For your post propagation.
Upvote/Resteem
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I had personal experience of that kind of incidence. once i lost my wallet and lost my debit cards ,
Once i requested the new ones someone has tried several times with my bank card and it was locked in the ATM machine, lol
but I had though if they succeed with 4 digit PIN i have to lost my money.
and i do not know who is going to take care of that
and i would definitely love " tap and pay " system that use in bitcoin ATM machines. you will never lost with this kind of method. but it will need secure locked system in your smart phone I am very much agree with you in this case @mexbit
Yeah, the PIN should be only used for ATM withdrawals.... Using it all the time in front of employees and cameras makes it unbearable...
The world aims to transform into a cashless economy but first it should aim to be a less cash economy!! Although virtual money is good and has its own merits but nothing could beat the feeling of crisp cash in our hands!! :)
"but nothing could beat the feeling of crisp cash in our hands!!"
Scrooge knows the feeling very well & has been teaching us since we were young!! :P
The same thing could be applied to banks passes, they usually use a 4 digit code as well. Credit cards are just a little easier when they don't have a limit to it. And paying at a club with your card just sounds stupid honestly... Always pin money before you go to a club.
If you have cash at hand yes... but if not.... Swear that you never paid in a club with a card! ;)
I completely agree with you @mexbit, the use of bank cards is now a big problem, because of the constant viruses and hacking, it is better to use cash.
Credit cards were never designed for the internet...
Oh yes, I meant that crackers using viruses hack ATM systems and online cardholders' offices, these problems are constantly present, just the banks are silent about them and hide them :)
This is very important
.upvote resteem
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i guess there is a limit fixed per card it goes higher as the level of card we have
Not sure about which limit you are talking, there should be a daily limit and a total available balance.
The case for 3DSecure
3DSecure allows a card holder to authenticate himself while making an online payment. It allows 3 domains to work elegantly together.
Domain 1: The card holder has the peace of mind that his card is not used without his authorization.
Domain 2: Merchants are protected from fraud and can provide the product and service without delay or extra costs.
Domain 3: Banks see that the transaction has been authenticated and are more likely to approve the transaction, to the convenience of the card holder.
The risk has been partially mitigated with the addition of an extra 3 digit security number referred to as CVV/CVC; this number was introduced because a decade ago it was common to print the card number on every purchase receipt and this security number can never be printed or stored and has become mandatory for ecommerce.
Sources-: Google!
Yeah... still shitty... and I as a customer do not feel the Domain 1 applied to me... I just feel, that if someone somehow gets my PIN and my card I am screwed.
You are absolutely correct! How many times I got this problem so I stopped using a credit card and now paying via a debit card! Atleast I know the amount of funds I added there. This is a very high risk thing! Yeah anyone can keep our card number and 3 digit number at the back side of the card and use it whenever and whatever fraudulent things! At the end I have to pay for it!
Now I saw some banks are sending verification pin code to the mobile phone! But sometimes it might not work well. Then another chaos happen!
So, I stopped using credit card and now enjoying with visa debit card :D
I know it has a risk, but atleast I can deduct it to the certain level! (That's how I feel)
Thank you very much for sharing such great article with us! Most of people doesn't concern about such kind of things. At the end it will be a chaos!@mexbit,
Cheers~
Precharged cards mitigate risks... I agree... But still it is unacceptable.... They should eliminate the whole card thing altogether and start from scratch...
you are killing steemit with your awesome post ......i think you brought an common issue which may help people a lot...thank you buddy
Congratulations
MinnowsPower listed your post "Shitty PIN authentication with Visa Cards... All the risks for you the holder! Banks protect themselves... you get screwed!" as one of the top 20 posts of the day...!!!
A very useful article for all credit card holders of the universe. "Banks are protected, you are screwed" Yes, you described with facts. Excellent article you have written.
100% Upvoted @mexbit by @MinnowsPower
MinnowsPower is not a bot, I am a Crowdfunding Hybrid
One small UpVote of Yours build MinnowsPower and MinnowsPower will Not Forget Your Support...!!!
Great article...I really like it...
Cheers~~~~~Nice post with useful ideas about credit cards by @mexbit
Signature can be forged too, there is always risk with money
thats very bad!
Sad day indeed.
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