Banks Confident in Apple Pay Security, Assume Liability for Fraudulent Purchases

[kdarling]

Stick it into a slot. It's in Phoenix, AZ. I know it's Chip & PIN, because if you swipe it will beep and say "Card Must be inserted!"

Obviously you're right!

Moreover, after I wrote the question, I've found that lots of people have mentioned using chip cards at Walmart.

Some have also said that if you hit the green button without entering a PIN, it switches to asking for a signature.

Very interesting about the "card must be inserted", too! Looks like we're all in for some changes soon.

Oh. Question: were you allowed to choose your own PIN?

 

[dontwalkhand]

Obviously you're right!

Moreover, after I wrote the question, I've found that lots of people have mentioned using chip cards at Walmart.

Some have also said that if you hit the green button without entering a PIN, it switches to asking for a signature.

Very interesting about the "card must be inserted", too! Looks like we're all in for some changes soon.

Oh. Question: were you allowed to choose your own PIN?

I think you can only change the PIN on Wells Fargo cards because WF's ATMs support PIN change. Being that I have USAA, there are no ATMs near me to be able to try to.

I can also go to Europe and change it at any ATM there because it has to change on the chip itself.

I've never heard it was possible to bypass the PIN, unless it is allowed in the CVM (up to the card not the terminal). PIN bypass was normal in the UK, when they were Chip and Signature and PIN was being introduced. Same with Australia, until they stopped allowing Sig recently as well.

It is also normal for a terminal with the chip reader enabled to force chip insertion if it detects the card has a chip (service code is in the magnetic stripe).

So far Walmart, Home Depot and select stores like Zumies I've been to has the chip readers Enabled. (And NFC TOO, so bring on ApplePay!)

EDIT: Chase bank ATMs have manual card readers but if you pull out your chip card the ATM will start beeping and say you must leave the chip card in the machine until after the screen where you enter your PIN.

And gas pumps at QuickTrip gas stations in Phoenix! I hope to see more gas stations soon but they will be the last as their deadline isn't until 2017, where has a regular store is Oct 2015

Times are changing indeed and they're changing fast.

I've attached a picture of what happens when you use a Chip and PIN card at a Chase ATM, and you insert and remove your card instead of insert and leave in.

 

[oddnendz]

Why is this is a surprise to you? My bank (one of the larger nationwide banks) has always covered fraudulent charges. In fact, a few years ago this actually happened to me. My bank actually proactively reached out to me and told me they identified a suspicious charge. They asked me if I actually made it, when I said no, and they wiped the charge from my account. Maybe your bank isn't so great?

Mine did the same. I got a phone call and a text asking if I made a $700 purchase at a Macy's in CA (I'm in NC). They wiped the charge, canceled the credit card and sent me a new one. I think my credit card got skimmed at the pump of the new gas station that opened close to me. I went back to getting gas at Sam's Club after that.

ETA, the credit union where my main checking accounts is issuing new debit cards to anyone who used it at a Home Depot. I was notified yesterday about it. I haven't seen any fraudulent charges on that account, but I guess they aren't taking any chances.

 

[DaveOlden]

Where are those Google Wallet apologists?

As a long time (18+ years) Mac user, who owns a Samsung Galaxy SIII, I would like to offer my sincerest deep apology for not having an iPhone on my belt.

I feel like a traitor.

(That's the closest to 'Google [Wallet] apologists' I can do )

(on the plus side: I have never used Google Wallet. Never will).

 

[Tech198]

"USAA has a zero liability policy"

I wish all banks were like this.

 

[Krevnik]

As for Apple Pay, I hope it isn't verify the amounts of deposits etc, because that takes a couple days, I am impatient and want to try this on day one

I'm saddened that USAA customers have to wait until the 7th.

The new chip credit cards in the U.S. are chip+signature, not chip+PIN. I do not know of any bank that issues them - and I have tried for one to use in Europe. So far without success.

Look to USAA. They cater to the armed forces, and are especially interested in making sure they are taken care of while stationed overseas. They have a special incentive to issue Chip & PIN enabled cards for that reason alone.

That said, those not overseas, like myself, may not see one of them for another year or so. They just replaced mine because of the Home Depot breach, and sent another stripe-only card. I'm adding that one as a test of Apple Pay, as USAA has been good about backing me up the couple of times I've had my CC info stolen.

 

[Roondog19]

My question is how do they authenticate the card info belongs to you? All is needed is card number, cvc, expiry date. Won't fraudsters just enroll stolen data to use in Apple pay? Who is doing the checks to ensure a fraudster doesn't enroll my info on their phone?

 

[dontwalkhand]

My question is how do they authenticate the card info belongs to you? All is needed is card number, cvc, expiry date. Won't fraudsters just enroll stolen data to use in Apple pay? Who is doing the checks to ensure a fraudster doesn't enroll my info on their phone?

Your bank will have a few security measures in place I'm sure of it. Also you'd probably get emails saying how your card has been added.

If you already have cards in your ApplePay and you get an email saying its been added, then you can call your bank and they would give you a new card and you would enroll that one.

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I'm saddened that USAA customers have to wait until the 7th.



Look to USAA. They cater to the armed forces, and are especially interested in making sure they are taken care of while stationed overseas. They have a special incentive to issue Chip & PIN enabled cards for that reason alone.

That said, those not overseas, like myself, may not see one of them for another year or so. They just replaced mine because of the Home Depot breach, and sent another stripe-only card. I'm adding that one as a test of Apple Pay, as USAA has been good about backing me up the couple of times I've had my CC info stolen.

Call and ask for a Chip & PIN card and they'll gladly send you one. If you want one now just call. I did that.

 

[dontwalkhand]

"USAA has a zero liability policy"

I wish all banks were like this.

They all do generally.

 

[Menel]

With magnetic stripes, banks assume liability. With Chip and Pin, merchants have to assume liability. Chip in pin is incoming to the USA 2016, and merchants will be required to accept liability for fraud in this case.

False.

Liability only shifts to merchants if, after Oct 2015, a customer with an EMV chip card wants to make a purchase, and the merchant doesn't have EMV chip reading hardware so has to fall back in mag-stripe.

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Maybe Chase will get moving on adding Touch ID to their app.

Its still not even iPhone6 sized.

It is a brilliant iOS7-esque design though, i like the location specific scenery.

I have a feeling they will have a big update out to coincide 8.1

 

[paul55br]

Setting the standard for the industry. Apple style.