[CyanLite4]

This is no different than chip+pin for physical purchases. There are still other major areas of fraud that has to be addressed.

It doesn’t cover credit risk-even on a debit card, there can be a “hold” period of an arbitrary amount before the final transaction clears. When you swipe a card at a gas station, they often run a $50 authorization hold on your account.

It also doesn’t cover merchant fraud—- Visa/MC covers you if the merchant doesn’t ship the product because they’re a fake company.

Then there are value-added warranty services that higher end cards offer. These are easily worth the 1%+ fee.

[FireBeyond]

> When you swipe a card at a gas station, they often run a $50 authorization hold on your account.

Safeway gas stations upgraded their pumps to have tap-to-pay.

But with increasing gas prices (and not getting into that), they upped the auth hold to up to $125.

Except many card issuers limit contactless payments to $100... rendering tap to pay useless on the pump because it'll deny the preauth and require chip insertion.

[_w1tm]

> Except many card issuers limit contactless payments to $100... rendering tap to pay useless on the pump because it'll deny the preauth and require chip insertion.

I’ve noticed lately that contactless payments that go over the limit don’t require chip insertion, the reader just asks for the PIN to proceed. Maybe there’s been some updates to the standards?

[FireBeyond]

Hmmm, not all credit cards have a PIN. Debit card, I could see that. I don't know if the data on the card indicates if there is a PIN attached to the card (i.e. ask for it if there is, don't ask if there's not).

[Nextgrid]

The card and terminal communicate on which CVMs (cardholder verification method) they support, and they agree on one. If they can't agree the transaction is either cancelled or processed as "no CVM" (like normal contactless tap & pay with a card) depending on the terminal's and card's risk profile.

[nasmorn]

We had a similar issue with ATM in Austria where they are all set to max give you 400 EUR. Which was a sensible idea in 2001 but pays for much less in 2024. Somehow the banks have never heard of inflation or really don’t want you to use cash