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Discover switching from Chip/Signature to Chip/PIN

Valued Contributor

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

I'd be in a lot of trouble if they were randomly assigned pins.
I'd also suspect many lenders would see many cards cancelled. I for one couldn't keep up with the numbers. So I'd cancel everything and just have 1 or 2 cards. I havd pins for everything at work. And after a week I tend to forget those of I've been off.

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Moderator

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


Harley14 wrote:
I'd be in a lot of trouble if they were randomly assigned pins.
I'd also suspect many lenders would see many cards cancelled. I for one couldn't keep up with the numbers. So I'd cancel everything and just have 1 or 2 cards. I havd pins for everything at work. And after a week I tend to forget those of I've been off.

+1

 

Randomly assigning the PINs would be a fantastic way to make people start writing them down, and of course some people would resort to writing it on the card itself, which would completely defeat the purpose. 

 

I really, really hope they don't go that route.  Smiley Frustrated

Moderator

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


UncleB wrote:

Harley14 wrote:
I'd be in a lot of trouble if they were randomly assigned pins.
I'd also suspect many lenders would see many cards cancelled. I for one couldn't keep up with the numbers. So I'd cancel everything and just have 1 or 2 cards. I havd pins for everything at work. And after a week I tend to forget those of I've been off.

+1

 

Randomly assigning the PINs would be a fantastic way to make people start writing them down, and of course some people would resort to writing it on the card itself, which would completely defeat the purpose. 

 

I really, really hope they don't go that route.  Smiley Frustrated


I can't imagine they would; I think virtually every PIN I've ever had I've been able to change.  PINs suck to remember, I have like 3 (one of those because I couldn't use a 4 digit PIN, le sigh) and I struggle with that even with how easy they are to remember... remembering which one goes where, meh.

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Contributor

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

Not interested in having to use a pin myself, discover is by far my favorite card but this could be a deal breaker, and for those of you interested in the PIN system, you dont have to wait, if you log in to discover online you can set up a pin, i found this while i was exploring there website last week.... Just an FYI Smiley Happy

Established Contributor

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

FYI, the federal government has held that use of a PIN cannot be used as an excuse to pass liability to the consumer, at least on the debit side:

 

The extent of the consumer’s liability is determined solely by the consumer’s promptness in notifying the financial institution (Comment 6(b)-3). Other factors may not be used as a basis to hold consumers liable. 12 CFR 1005.6 expressly prohibits the following factors as the basis for imposing greater liability than is permissible: the consumer was negligent (e.g., wrote a PIN on an ATM card), an agreement between the consumer and the financial institution provides for greater liability, or the consumer is liable for a greater amount under state law (Comment 6(b)-2 and 6(b)-3).

 

(emphasis mine; text is from page 12 of this document)

 

I also looked at the terms and conditions for my chip and PIN cards issued by US banks/credit unions a while back and didn't really see anything that they could use to push liability to me either. I'm not worried about this possibility, honestly.

 

Anyway, I'm more concerned with how vastly unprepared merchants here actually are if Discover and other major banks ever do go to PIN. I mean, the majority of smaller businesses where I live still hide their card terminals--which has caused my Diners Club card to be rejected by merchants more than once. That alone could cause people to complain and demand a return to chip and signature without vastly better training and marketing on the part of acquirers, terminal providers and Visa/MC.

 

BTW, PIN might not help with security as much as people think. For instance, the top 20 most commonly used PINs are used by something like 25% of cards, not to mention that "lost/stolen" fraud is only around 5% of all credit card fraud in this country and that the information on the front and back of the card can still be used to buy stuff online. It might be something that's better suited for the no-FTF travel cards (for overseas compatibility/convenience) than the cards that'll mostly be used domestically, considering the above.

 

Valued Contributor

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


TwistedCircuits wrote:

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.


Thanks for this info! I was unaware. Hope it's soon!

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Established Contributor

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

As an update, I set the PIN on my Discover It using their mobile app and tried to use my card at a couple of places that I know use the chip. The card still behaved as a chip and signature card, unfortunately. I also requested a replacement card out of curiosity with the same result.

 

Anyway, the CSR I talked to after all that said that the language in the mobile app regarding the PIN being required at chip enabled terminals was a mistake. Since this original announcement was a while ago, I somehow doubt they're actually going to go through with the switch, but who knows?

Super Contributor

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


tmiw wrote:

FYI, the federal government has held that use of a PIN cannot be used as an excuse to pass liability to the consumer, at least on the debit side: 


This is and has always been my main concern.

 

I need Federal laws to be codified to state without ambiguity that a correct pin in of itself (absent of other factors) does NOT shift liability to consumers.  Even then, I'd like to see a few cases established in Court before using the feature.  Until then, the temptation is far too great for Issuers just to shift the blame to all consumers assuming only a small minority will sue or go to arbitration.

 

 

Valued Contributor

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


Harley14 wrote:
I'd be in a lot of trouble if they were randomly assigned pins.
I'd also suspect many lenders would see many cards cancelled. I for one couldn't keep up with the numbers. So I'd cancel everything and just have 1 or 2 cards. I havd pins for everything at work. And after a week I tend to forget those of I've been off.

Are you trying to say Americans are dumber than everyone else in the world? 

 

The rest of the world uses PINs... It's really not that hard to remember a four digit number. 

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Established Contributor

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


mountaindewvoltage wrote:

Harley14 wrote:
I'd be in a lot of trouble if they were randomly assigned pins.
I'd also suspect many lenders would see many cards cancelled. I for one couldn't keep up with the numbers. So I'd cancel everything and just have 1 or 2 cards. I havd pins for everything at work. And after a week I tend to forget those of I've been off.

Are you trying to say Americans are dumber than everyone else in the world? 

 

The rest of the world uses PINs... It's really not that hard to remember a four digit number. 


I guarantee that if you read sites like Not Always Right or reddit's /r/TalesFromRetail, you might start to wonder...

 

(Also, there are other chip and signature countries. It's not like the US is the only one, it's just the biggest.)