Weird, because most of the data I can find shows that the US has one of the highest rates credit card fraud in the developed world. Australia being very far down the list typically, and yet we got chip & pin and Paywave/Paypass well before most other places
Re:Privacy – Forget Your Credit Card
by narrowrail on Friday March 25, 2016 @09:31PM
(#11363989)
Before the internet, and before its pervasiveness (~2010), all, then most, of the credit card transactions were 'card-present.' The US still leads in fraud prevention for 'card-present' transactions. The US was optimized for these transactions, so the internet has been a bit of a hassle and or opportunity (e.g. paypal).
Paywave/Paypass is about convenience, rather than security. It is less secure than chip and pin.
Fraud was a lower risk to credit card companies in America because [1] they were better at detecting and preventing fraudulent transactions, and were better at passing on the costs of fraud to retailers and consumers.
[1] http://www.economist.com/blogs/economist-explains/2014/10/ec...
Quite interesting. Do you know why credit card fraud was a bigger issue elsewhere in the world and not in the US?
Re:Privacy – Forget Your Credit Card
by narrowrail on Friday March 25, 2016 @09:06PM
(#11363890)
My understanding (I wasn't in the fraud department) was that the US historicaly had better connectivity (leased ISDN lines), and was doing fraud detection in the 'cloud' (i.e. soft real-time). Most other countries had to rely on connectivity-free authorization and ISO 7816 was a better fit there (smartcards with onboard storage and authentication methods).
Edit to add: This is not a tech issue, it is politics and the like.