The Cashless SocietyFollow

The problem is that you'd have to update/change every existing credit card POS to accomplish this. And I'm not just talking about the physical machines (which would be easier), but all the online stuff as well. When you make a purchase online all you need is that stuff written on the card. Unless some security company writes an online POS software system and then everyone on the internet chooses to buy/use it, this isn't going to happen anytime soon. In fact, it looks like the direction is moving away from increased security in this area and more into the "we'll make it as easy to pay for stuff online as possible, and just cover for all the theft that'll happen as a result".

Why? It's their money that you took. Don't like the fees, don't borrow it by overdrawing.

Canada, or at least Manitoba* is almost all pin purchases for physical stores, it feels weird not to use it when I'm in the states. the nice thing about the transition is that the cards will work both ways, so it's easy to just gradually swap over.

On the internet side, they do have the secondary enter a password thing for credit cards, but it doesn't seem to be gaining steam.

*I think it applies over all of Canada but I'm not sure and didn't feel like doing research.

Edited, Apr 10th 2012 8:02am by Xsarus

And they'll also apply the largest debit first and then the smaller ones. So if you do go over, you'll get hit with the maximum number of overdraft penalties. If it were just random, I could see it, but from numerous people who've had this happen to them, it's clearly a deliberate ordering of charges going on.

Someone mentioned earlier having a separate account just for debit card use. That's the same thing I do. I keep enough in that account to ensure that I can pay for anything I'm likely to need to pay for in an emergency, but not so much money that I'd be financially crippled if someone stole my card number and drained it. My primary account has direct deposit going in, a checkbook attached (debit account has a checkbook as well, so whatever), and I withdraw cash using ATM (at the bank) for most purchases.

So normal day to day purchases are paid with cash. On the super rare occasion I'm in a situation where I need to buy something that's a bit more than I expected I can use the debit card. Checks are used only for planned purchases to specific vendors (my mechanic I pay by check for example). I also have one credit card for "just in case" situations. I pretty much never use that at all. Online stuff is handled with the debit card usually.

This system works fine for me and prevents the most likely sources of theft from happening (and minimizes them if/when they happen). At least, I've never had an issue so far.

I use a debit card attached to a separate account (thus limiting exposure should it be stolen). To be absolutely honest, I avoid using credit cards because I'm absolutely horrible at remembering to pay my bills on time. I pay with a credit card and it's guaranteed that I'll get stuck with some extra expenses (especially now that they're charging you late fees based on purchase time and not pay cycles, eliminating grace periods, etc). I'm ok with the risk that maybe once in my life if I'm really unlucky someone might just drain that account and put me out about 1/50th of my yearly income. I'll lose a hell of a lot more in late fees and whatnot by using credit cards. I think maybe once in my entire life did I actually manage to pay one before incurring some kind of penalty.

There's a reason why all of my monthly bills but one are automated (and I leave that one off so that it forces me to check my bank online once a month just to keep an eye on things). And yeah, I fully acknowledge that this has nothing to do with security, but is just a recognition of my own habits (bad and all!).

As to security, I don't do online business with non-established businesses anyway. So while there's still a risk, it's a lot less than handing your information to any random site that has something shiny on it. I don't tend to do a lot of online shopping (actually I do pretty much zero). I shop in stores, like God intended. About the only stuff I do online are games I have accounts for. And that's just like 3 I think.

Lots of places in ontario do that as well, but lots also just have quick pass, you don't even need to show ID or anything with the CC to prove you are the owner of said Card. You simply swipe it on the magic pedestal and get charged. I am not sure if Visa or Amex have this option but I know Mastercard does, and it can be dangerous for card theft.

(however afaik this is an option you take up with MC and thus the security issues are ones that you accept and aren't just shocked to hear about one day.)


Edited, Apr 13th 2012 8:35am by rdmcandie

It's called Mastercard PayPass, you just tap your card to a scan pad (typically on the counter or attached to a drive-through window). It only works for small(ish) purchases. I have a dongle on the back of my phone so I don't even have to take my wallet out to buy my coffee. I get an email immediately after every transaction confirming that a purchase has been made.

This is great for a credit card since I can just call Mastercard and tell them my card's being used by someone else and they'll cancel it and credit me the funds. I would NEVER do this with a debit card.