Chip and Dip!

I read an article online (sorry I can’t remember where) about “chip and dip”. It claimed in US customers prefer to put their card in the reader then back in their wallet/purse before their groceries are scanned and bagged rather than after. Never seen it work that way in UK…so wondered if anyone saw this happening in the USA, and what their thoughts were on (a) how this works, and (b) if they would like to pay that way!?

Correct me if I am wrong, but I believed in America the chip and pin system was still not (atleast widely) adopted. With authorisation gained through signature or id and the mag strip being the primary method of retrieving card data. However it has been a while since I was there.

Mainly speculation, but I would imagine a system like this would work very similarly to a reward card. You scan your card and then at the end of the transaction the money is debited.

This wouldn’t work as seamlessly with chip and pin. As the card is required to have the pin entered to decrypt the contents of the chip.

If it would not be required to have a balance you could enter the pin early, but this would require a major infrastructure change which I don’t see as much benefit.

After all it is very nice to see exactly how much you will be charged before committing to the transaction by entering your pin. It would seem like more of a step backwards to have this system.

However these are just my thoughts, I am not aware of the restrictions card readers have in place.

A quick Bing and it seems this is only available with Visa “Quick Chip” not Mastercard at the moment…

The new specs now permit an EMV card to be dipped and withdrawn from a terminal BEFORE the transaction is finalized.

Maybe it is like a hotel or car hire preauthorization and despite the card being dipped before the cost of your shopping is known the amount is finalized after all the shopping is scanned?

No you are not wrong.

The speed of the roll out of Chip and Pin enabled EMV terminals has been tortoise like.

One big issue was a software upgrade to ePOS terminals not being certified so the liability would have passed from the card companies to the retailer so 5 big forms flat out refused. However 5 big retailers have now taken the step and while their fraud decreased it has increased by 11 or 12 percent in the retailers who have not made the move

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in America everything is a bit odd. They have customarily been able to lend their kids, friends or spouses their credit cards and just say take this and put it on my card! Not sure how they did that but bankers tell me it happens.

How often was your signature checked before Chip&PIN, or abroad?

Tell kid/friend/spouse (okay, so probably older-kid/spouse) your PIN and it’s even easier and less likely to be ‘caught’.

With contactless, it’s even easier.

It’s not even clear to me that this is a problem, you can’t be defrauded by your own instruction, surely.