Re:The Machine Fired Me
by michaelmrose on Tuesday June 19, 2018 @11:36PM
(#17352378)
In actual practice TONS of people ruin their chips or regularly run them while doing stupid things like holding onto the card and bending it slightly or pulling it out early. When it fails to go through because they couldn't follow directions or because its outright broken they keep using their cards for months or until they get a new one expecting the retailer to deal with their half broken credit instrument and complaining energetically if it doesn't work.
Since a relatively small number of complaints ruins the parent companies perception of how well the individual store is doing as far as customer service the store level doesn't want anything to inconvenience their customers especially since literally 99.9999% of swipes are from legit customers not thieves.
The retailer either accepts swipes or not, ditto for your bank, the fact that there is a fall back feature if chip fails isn't a security failure unless it opens up a new avenue. (Someone could just print a magic strip unless one or both blocked mag strip charges)
At some retailers lights will flash around both the swipe slot and the chip slot on the machine when it is time to pay, but I’ve experimented with swiping a chip-enabled card and every time the machine immediately says ‘Insert Chip’. I think retailers still really want to accept swipes to prevent chip reliability issues from resulting in lost sales, but they also want to heavily prefer chip transactions because then they aren’t as liable in fraud cases. So perhaps they’ve bought credit card machines that have conditional-swipe failover for this.
It is about processing fees IIRC. No way to avoid the fraud liability but you can get a lower cost per transaction by having chip and being certified to take payments through it (including some extra auditing)
Given how craptacular the terminals are here, not having the fallback would lead to a nontrivial amount of lost sales. (Sooo.. I can’t pay? Guess I have to abandon this cart of groceries and find a bank branch...)
The chips also don’t seem to last as long as the magstripes for some reason (which makes zero sense when you think about it). I’ve had to get my card replaced 3x in the space of two years.
Luckily EC cards in Europe don't do that. If you fail 3 times the chip stops working and the magnet stripe tells you to use the chip.
It's the other way around. If you try the chip 3+ times, and it doesn't work, you can swipe the card, and the swipe transaction will work.
When the more secure method fails, it falls back to the less secure one. It's lunacy.