The other day I noticed that I had an interesting symbol on the back of my American Express card. There are four curved lines, like waves from a radio. The logo also appears occasionally on credit card scanners in stores like the Home Depot.
Poorly Advertised And Poorly Implemented
I may not be the world’s foremost expert on credit cards, but I do spend far more time then most people reading, writing, and learning about the industry. That said, I am amazed that this feature is almost a secret. There is nothing on my card that indicates there is a chip in it, and no one at the stores I went to seemed to have any idea that I could just hold my card up rather than swipe it. The first time I tired it, it didn’t even work, making me wonder if the functionality was actually there. I did ultimately get it to work once.
Is It A Security Risk?
A local television station in my hometown of Denver has this article about how the radio transmitting chip in your credit card could be vulnerable. Is this actually a security risk? The short answer is, no, not to you. As I observed last week, the media has a compulsion about publishing stories about credit card fraud that scare consumers. Ultimately, the burden of paying for fraud lies squarely on your credit card processor and your card issuing bank. The only obligation you have is to report fraudulent charges.
Yes, in theory, someone could use some electronic gizmo to read the chip on your credit card. In theory, they might be able to decrypt it (I should hope the info is encrypted, but I really don’t know). The next step would be to charge the card on the internet or some place where they do not have to physically present the card. You would notice the charges, and report them to your bank, and receive a replacement card. All and all, a minor inconvenience.
What’s The Point?
Even if you accept that these radio chips in your credit cards represent an actual security risk, it has me wondering; Why bother? I mean, it is not all that difficult to swipe a card. Holding it up for the sensor saves perhaps a fraction of a second. If I can’t even count on most credit card readers to work, I don’t even save that time as fruitlessly wave my card at machines around town. Either implement this system universally and educate merchants and cardholders, or just let it die. In the mean time, I will just continue to swipe my card as usual, but I won’t go out and buy a “metallic cloth liner” in my wallet or a tin foil hat for that matter.
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