I think one of the main aspects that is being overlooked is just how many businesses and vendors would be happy about you paying with a "coin"? Whilst it's the same shape as a credit card, it doesn't have those familiar features: card number, expiry date, security number etc. It does have a signature at the bank, but so do loyalty cards for example.
I am guessing that what would seem to be a convenience, swiftly turns into a hinderance when for the gazillion time you have to explain to the cashier and then the manager what the "coin" is, how it works, that it is actually legitimate and that they will get the money from you, honest!
And just thinking of another angle, does anyone know if there is anything that identifies it as a legitimate "Coin"? If it doesn't and they do manage to get widespread recognition and acceptance for "Coin", how long will it be before you start seeming "Coin" clones that card skimmers and scammers can now use with stolen card details? I would think that it will be much easier for them, because they can fleece money via locations that would have previously needed the physical card.
The US is not doing chip and PIN for whatever reason. They are doing chip and sign. So it only validates that the real card is present at the transaction, but doesn't authenticate the purchaser with a PIN. So it will prevent the use if this coin card. I suspect people will have a hard time using this card. Any time the clerk needs to see the card the transaction will be cancelled since you don't have the real card with the signature, etc.
No worry - the transition to EMV is going to happen very very slowly. Card companies are giving until 2017 for the transition to "complete" and liabilities for legacy-cards will be switched to merchants.
Edit: Three years is slow enough for me, as I expect Coin will happily modify their product in response with plenty of time.
Coin with its connected credit card is introducing a steam engine in the age of the electric mag-lev train.
Those countries like the US which persist in using outdated, easily compromised technology, are a liability to account holders in chip and pin countries: Chip and Pin cards still have the legacy mag stripe to support the laggard countries, it is known that thieves steal chip and pin cards then travel to non Chip and pin countries to use the swipe to withdraw funds easily.
A cardholder's confidential data is more secure on a chip-enabled payment card than on a magnetic stripe (magstripe) card, as the former supports dynamic authentication, while the latter does not (the data is static). Consequently, data from a traditional magstripe card can be easily copied (skimmed) with a simple and inexpensive card reading device – enabling criminals to reproduce counterfeit cards for use in both the retail and the CNP environment.
THIS IS really DISAPPOINTING. App is still not released or no clue where to get it. NOTHING HAS BEEN DELIVERED that has been promised. website still says SUMMER 2014 which is FALSE advertisement. It's not about 50$ its the principal and its sad and so far this exciting new card has been all false advertisement
Comments
I think one of the main aspects that is being overlooked is just how many businesses and vendors would be happy about you paying with a "coin"? Whilst it's the same shape as a credit card, it doesn't have those familiar features: card number, expiry date, security number etc. It does have a signature at the bank, but so do loyalty cards for example.
I am guessing that what would seem to be a convenience, swiftly turns into a hinderance when for the gazillion time you have to explain to the cashier and then the manager what the "coin" is, how it works, that it is actually legitimate and that they will get the money from you, honest!
And just thinking of another angle, does anyone know if there is anything that identifies it as a legitimate "Coin"? If it doesn't and they do manage to get widespread recognition and acceptance for "Coin", how long will it be before you start seeming "Coin" clones that card skimmers and scammers can now use with stolen card details? I would think that it will be much easier for them, because they can fleece money via locations that would have previously needed the physical card.
The US is not doing chip and PIN for whatever reason. They are doing chip and sign. So it only validates that the real card is present at the transaction, but doesn't authenticate the purchaser with a PIN. So it will prevent the use if this coin card. I suspect people will have a hard time using this card. Any time the clerk needs to see the card the transaction will be cancelled since you don't have the real card with the signature, etc.
No worry - the transition to EMV is going to happen very very slowly. Card companies are giving until 2017 for the transition to "complete" and liabilities for legacy-cards will be switched to merchants.
Edit: Three years is slow enough for me, as I expect Coin will happily modify their product in response with plenty of time.
Coin with its connected credit card is introducing a steam engine in the age of the electric mag-lev train.
Those countries like the US which persist in using outdated, easily compromised technology, are a liability to account holders in chip and pin countries: Chip and Pin cards still have the legacy mag stripe to support the laggard countries, it is known that thieves steal chip and pin cards then travel to non Chip and pin countries to use the swipe to withdraw funds easily.
A few links and quotations:
The suspect also had several prepaid gift cards issued by Visa and MasterCard (MA), and a device for embedding data on a magstripe, called a "magstripe reader-writer," says the arresting officer, Edmonton Detective Bob Gauthier.
How it's done
By altering the magstripes of authentic bank gift cards, the suspect bypassed a difficult and risky step other magstripe scammers are forced to take: fabricating fake credit cards.
"Instead of having to make fake plastic, you can load up bank gift cards with stolen data you get from people online, then go in and use them like cash," Gauthier says.
from USA today "Thieves turn simple strip into cutting-edge tool".
MSR609 Magnetic Card Reader Writer Encoder on eBay for US$250