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Discover switching from Chip/Signature to Chip/PIN

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Anonymous
Not applicable

Discover switching from Chip/Signature to Chip/PIN

Quote from the article linked below:

 

"...Discover Chairman and CEO David Nelms announced the company would begin migration to chip and PIN..."

 

Article

 

Discover is currently Chip and Signature enabled, and I feel this is a good move.

Message 1 of 52
51 REPLIES 51
Discover2016
Valued Contributor

Re: Discover switching from Chip/Signature to Chip/PIN

Great news! I hope more credit card issuers embrace chip and pin here in the US.

Gardening until September 2025
Next app: Mortgage in September 2025
Message 2 of 52
Anonymous
Not applicable

Re: Discover switching from Chip/Signature to Chip/PIN


@Discover2016 wrote:

Great news! I hope more credit card issuers embrace chip and pin here in the US.


Agreed.  While europeans don't typically carry as many cards as we do, if the issuers let us pick our own PIN's life will be simple.

Message 3 of 52
gdale6
Moderator Emeritus

Re: Discover switching from Chip/Signature to Chip/PIN

Im not interested in being delayed further at the checkout nor am I interested in having to remember more pin(s), I may just cancel the card and any other issuers card who decides to go this route.

Message 4 of 52
Pway
Valued Contributor

Re: Discover switching from Chip/Signature to Chip/PIN

Interesting article.  When the chip and signature was introduced this was supposed to be the safest, but we have seen that to be untrue.  I just don't see the US going to Chip/Pin at this time.  The average US cardholder have about 3 cards (Conservative) in their wallet.  

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.
Message 5 of 52
Anonymous
Not applicable

Re: Discover switching from Chip/Signature to Chip/PIN


@gdale6 wrote:

Im not interested in being delayed further at the checkout nor am I interested in having to remember more pin(s), I may just cancel the card and any other issuers card who decides to go this route.


Kind of surprised to hear this opinion.  I think I'd rather pin that sign.

Message 6 of 52
Pway
Valued Contributor

Re: Discover switching from Chip/Signature to Chip/PIN


@gdale6 wrote:

Im not interested in being delayed further at the checkout nor am I interested in having to remember more pin(s), I may just cancel the card and any other issuers card who decides to go this route.


I totally agree.  I have a hard time remembering my bank debit card pin number, let alone a pin number for a credit card.

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.
Message 7 of 52
UncleB
Credit Mentor

Re: Discover switching from Chip/Signature to Chip/PIN

As long as we're allowed to choose our own PINs I'm fine, but if they start assigning random PINs they will likely lose me, as well as many others.

 

If they go the random PIN route I hope they beef-up their call centers as well... it's going to get hectic. 

Message 8 of 52
Anonymous
Not applicable

Re: Discover switching from Chip/Signature to Chip/PIN

Chip and PIN is always being spun (as it is in the article) as being safer for consumers. In reality, it's only safer for the banks, and it's incredibly harmful to consumers. Having worked for several years in the banking industry in Canada, I can tell you exactly what chip and PIN means. It means that you, the consumer, will be on the hook for ALL fraudulent charges on your credit cards wherein a PIN was used, because the banks claim that only you could have used the card (since nobody else is allowed to know your PIN). Alternatively, if you gave someone your card and PIN (perhaps a spouse), you're still on the hook because you're responsible for violating the TOS of your card.

 

Banks claim that a chip and PIN transaction cannot successfully go through if the PIN is entered incorrectly. This is entirely false, but they will use this argument to PIN the phony charges on you, the consumer! What the banks don't--and never will, tell you, is that chip and PIN has been flawed from the very beginning. Smart criminals have long been able to trick card terminals into thinking that a wrong PIN is actually correct. When a trace is performed to see if a PIN was used for a transaction that you've reported as fraud, a simple Y or N answer comes back. Even if the PIN that was used was wrong, and the criminal tricked the terminal into thinking it was correct, a Y (meaning that Yes, a PIN was used, and therefore you must have done the transaction yourself) will come back in the report to "prove" that the transaction was legit. And who pays for the fraud when this happens? You! Not the bank, because their argument is that you must have made the charge. The burden of proof is 1--% on you to prove otherwise.

 

During my time as a banker I have seen numerous fraud victims further victimized by having to pay for the fraud themselves. And many of you will argue that the banks won't make people pay because they have always absorbed fraud themselves in the USA. But what you're not considering is the fact that they will now be able to reword their credit card agreements to pass liability over to the customer while still claiming to absorb all fraudulent transactions themselves. When they change the definition of fraud, they can literally pass the actual fraud on to you, all the while claiming that the charge wasn't fraudulent at all, but a completely legitimate charge. Every Canadian bank has been doing this since the day chip and PIN first came in.

 

Everyone that thinks chip and PIN is a good thing for consumers is in for a very rude awakening if and when their account is fraudulently used with a cloned card and a fake PIN. My advice is to hold onto your cards with the grip of death, keep your limits relatively low (to limit your losses in the event of a fraud), and set text and e-mail alerts for absolutely everything you possibly can. It may not protect you entirely, but you've got to take every possible measure to protect yourself if chip and PIN comes in.

 

G

Message 9 of 52
Anonymous
Not applicable

Re: Discover switching from Chip/Signature to Chip/PIN

@Gorilla_88

 

I definitely thank you for your insights, though there's one critial thing you might not know about.  It's federal law here in the US that a bank cannot hold you liable for fraudulent charges (but the consumer does have to cough up $50, which the payment networks pay on your behalf as part of the fraud protection service).  I have no idea if Canada has a similar law?

Message 10 of 52
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