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Wireless Mobile Payment Protections Lacking
Consumer's Union Urges Improvement
by Karl Bode 03:09PM Monday Jan 09 2012
We've noted how AT&T, Verizon, Sprint and T-Mobile all are incredibly interested in having your smartphone ultimately replace your wallet, and are busily working on new services (like Isis) to make this happen. There's obviously already privacy and security concerns from consumers who don't really trust these companies with the personal data they already have -- and now the Consumer's Union has issued a report noting that most of these services lack the fraud protection you'll find with your existing debit and credit services when your phone is lost or stolen. The group is urging carriers to adopt consumer protections that mirror regulations issued by the state's Public Utilities Commission (PUC).

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FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

1 recommendation

System doesn't bill phone acct but credit card

Current NFC Sprint uses CC or Google debit card. ISIS uses Discover CC. The planned systems don't go on phone bill. So usual credit card protections will apply.

n2jtx

join:2001-01-13
Glen Head, NY

Count Me Out

I'll stick with my good old credit cards though I would not mind having "chipped" ones like they are using in Canada. I do not even bother with a debit card as those too have limited legally enforced protections.

Having seen how cell phone companies can screw up just your cell phone bill, do you honestly trust them to bill you correctly for non phone service items?
--
I support the right to keep and arm bears.

gballer

@reyrey.net

hmmmm

I guess I'm the minority because there is no way in hell I ever plan on using this..

MSauk
MSauk
Premium
join:2002-01-17
Sandy, UT
Reviews:
·Comcast

Re: hmmmm

I used it and really liked how easy and fast it was to use.

Also I am shocked (well I guess not to shocked) at how far behind we are when it comes to CC security here in the US. Over in Europe back in 99 they were already used CC's or bank cards with chips in them!

Hell we still don't have that here. How sad is that!
--
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FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Re: hmmmm

said by MSauk:

I used it and really liked how easy and fast it was to use.

Also I am shocked (well I guess not to shocked) at how far behind we are when it comes to CC security here in the US. Over in Europe back in 99 they were already used CC's or bank cards with chips in them!

Hell we still don't have that here. How sad is that!

Sure we do. I know a couple people with chips in their MC credit cards and they just wave card over the MasterCard PayPass terminals at CVS, WAWA, RiteAid, Home Depot, Mcdonalds, Sunocos, etc,etc.
--
The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
»www.politico.com/2012-election/


ano198234

@sbcglobal.net

Re: hmmmm

But it's pretty much useless since so few places support it. I worked at a large movie theater chain for a few summers and I *think* we had those wireless CC reader things, but nobody in the staff knew how to work them and no customers ever used them. I have no idea if our cash register software even accepted them. Most of the time the readers were stuck between the cash register and the wall.

MSauk
MSauk
Premium
join:2002-01-17
Sandy, UT
But over there it seems to be mandatory? (more of a question then a statement) or widespread than in the US.
--
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CharlesH1

join:2011-04-29
Milpitas, CA

Re: hmmmm

said by MSauk:

But over there it seems to be mandatory? (more of a question then a statement) or widespread than in the US.

In Europe, chipped credit cards are the default. Merchants are supposed to be able to accept the obsolete magnetic stripe cards, but not all do. And many ticket machines (like for the railroads) do not accept magnetic stripe cards. This issue comes up a lot on travel sites.

MSauk
MSauk
Premium
join:2002-01-17
Sandy, UT
Reviews:
·Comcast

Re: hmmmm

Yep, like I said when I was over there in 99 it seemed pretty standard. So why have the CC companies been so far behind the times here? Why is that acceptable to not be secure? Fraud is good for them? Hoping that most people miss it? I don't know but it does frustrate me that we are not ahead more tech wise in that area.
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chgo_man99

join:2010-01-01
San Jose, CA

Re: hmmmm

1. Cost of covering fraud is lower than replacing the whole system
2. All cc terminals in the us are linked online and all transactions are verified. In Europe offline cc transactions are not uncommon.
3. Protects well against cloning fraud but not online fraud
4. Customers do not want more liability for purchases when PIN replaces signature.
5. "Greed is good" - Gordon Gekko

cowboyro
Premium
join:2000-10-11
Shelton, CT
Reviews:
·AT&T U-Verse
said by FFH:

said by MSauk:

I used it and really liked how easy and fast it was to use.

Also I am shocked (well I guess not to shocked) at how far behind we are when it comes to CC security here in the US. Over in Europe back in 99 they were already used CC's or bank cards with chips in them!

Hell we still don't have that here. How sad is that!

Sure we do. I know a couple people with chips in their MC credit cards and they just wave card over the MasterCard PayPass terminals at CVS, WAWA, RiteAid, Home Depot, Mcdonalds, Sunocos, etc,etc.

It's not the same! The "chipped" cards from Europe have contacts just like an old phone card. This has nothing to do with the wireless "paypass" feature.
chgo_man99

join:2010-01-01
San Jose, CA

Re: hmmmm

said by MSauk:

I used it and really liked how easy and fast it was to use.

Also I am shocked (well I guess not to shocked) at how far behind we are when it comes to CC security here in the US. Over in Europe back in 99 they were already used CC's or bank cards with chips in them!

Hell we still don't have that here. How sad is that!

Some large US banks now issue credit cards with chips to frequent overseas travelers.

Also you are free to set up an account with debit chip card in Canada or Europe even if you are not citizen of any foreign country. You may be required to provide a local residence address though.
jjeffeory

join:2002-12-04
USA

Re: hmmmm

...and you're free to pay foreign transaction fees too with those banks.
chgo_man99

join:2010-01-01
San Jose, CA

Re: hmmmm

No foreign atm transaction fee if you withdraw cash with ATM Global alliance bank. Here in the U.S, Bank of America is in this one. You just have to know foreign partner bank in a country you visit.

Also those foreign transaction fees are not big, but they add up if you use a lot. You still need to use a CC in certain highway tolls, gas pump stations or self-serve train kiosks.

cowboyro
Premium
join:2000-10-11
Shelton, CT
Reviews:
·AT&T U-Verse
said by jjeffeory:

...and you're free to pay foreign transaction fees too with those banks.

As opposed to having to carry large amounts of cash and having the same fee (if not higher) buried into the exchange rate at some currency exchange place.

Corehhi

join:2002-01-28
Bluffton, SC

Re: hmmmm

said by cowboyro:

said by jjeffeory:

...and you're free to pay foreign transaction fees too with those banks.

As opposed to having to carry large amounts of cash and having the same fee (if not higher) buried into the exchange rate at some currency exchange place.

Cash is actually more expensive then using any CC when in a different country.
chgo_man99

join:2010-01-01
San Jose, CA
Currency exchanges are always more expensive than a visit to a local bank.

cowboyro
Premium
join:2000-10-11
Shelton, CT
Reviews:
·AT&T U-Verse

Re: hmmmm

said by chgo_man99:

Currency exchanges are always more expensive than a visit to a local bank.

Not always, sometimes. Airports and hotels are the places with the worst rates.
Even exchanging at the local bank is a rip-off. Depends on currency and the country. And selling back your unused foreign currency for USD is even worse.
chgo_man99

join:2010-01-01
San Jose, CA

Re: hmmmm

said by cowboyro:

said by chgo_man99:

Currency exchanges are always more expensive than a visit to a local bank.

Not always, sometimes. Airports and hotels are the places with the worst rates.
Even exchanging at the local bank is a rip-off. Depends on currency and the country. And selling back your unused foreign currency for USD is even worse.

I agree. When came back from Canada, I had $10 Canadian dollars left in my wallet, and got back only $5.XX since local exchange ripped off this transaction $3 just for transaction.
jp10558
Premium
join:2005-06-24
Willseyville, NY

Re: hmmmm

I don't know how workable it is for changing countries, but there are online services like »www.xe.com/fx/how.php ... Not sure if you'd save money once you got the funds to them and then back out...
chgo_man99

join:2010-01-01
San Jose, CA

Re: hmmmm

this is for cashless transactions, not exactly something for $10 in cash.

Corehhi

join:2002-01-28
Bluffton, SC
said by gballer :

I guess I'm the minority because there is no way in hell I ever plan on using this..

I really think only an idiot would trust a cell phone company with this. I don't trust them to get a bill right and would never have them automatic debit my account let alone anything else.
chgo_man99

join:2010-01-01
San Jose, CA

Re: hmmmm

starbucks already uses this form of payment if you have a starbucks card registerd. Its worth it since it cost no extra but gives you discount on flavored lattes, free coffee refills and membership privileges. You can't leave store and come back though if you want free refill.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

Re: hmmmm

said by chgo_man99:

starbucks already uses this form of payment if you have a starbucks card registerd. Its worth it since it cost no extra but gives you discount on flavored lattes, free coffee refills and membership privileges. You can't leave store and come back though if you want free refill.

"Free refills and membership privileges". Is that all it takes to surrender?
talz13

join:2006-03-15
Avon, OH

Google Wallet

I'd prefer something more like Google Wallet where it just stores your regular credit card information to pay via NFC. I would assume and hope that these transactions would have the same protections a standard credit card purchase would have.

The only thing Google Wallet needs to do is expand the types of cards you can use with the service (currently limited to Citi MasterCard and Google prepaid card).