Way to go Google (really Motorola) with this new prototype. This is one of the first novel ideas I’ve seen in a couple years. For too long has virtual reality (VR) relied on the single camera in an app. Its always felt like a clunky solution and I’m glad to see someone really working on improving it.
Yet I’m not sold that a cell phone is the correct application for this technology, or at the…
Tom Gara spoke with MasterCard’s Carolyn Balfany about the new chip-based payment system known as EMV:
Part of the October 2015 deadline in our roadmap is what’s known as the ‘liability shift.’ Whenever card fraud happens, we need to determine who is liable for the costs. When the liability shift happens, what will change is that if there is an incidence of card fraud, whichever party has the lesser technology will bear the liability.
So if a merchant is still using the old system, they can still run a transaction with a swipe and a signature. But they will be liable for any fraudulent transactions if the customer has a chip card. And the same goes the other way – if the merchant has a new terminal, but the bank hasn’t issued a chip and PIN card to the customer, the bank would be liable.
The key point of a liability shift is not actually to shift liability around the market. It’s to create co-ordination in the market, so you have issuers and merchants investing in the migration at the same time. This way, we’re not shifting fraud around within the system; we’re driving fraud out of the system.
That’s an interesting way to make everyone is very much incentivized to update their systems. It sure seems like it will work. We’ll see. It’s ridiculous that the United States isn’t using the chips already.
Not entirely true, MG. Lets take this a few points deeper.
First off, yes, it will help. A lot. It won’t solve the problem though, not totally.
The assumption made here in the liability shift is that the merchant isn’t already eating the costs of the fraud. In most cases, they are. The customer doesn’t (at least, not over $50) and most of the time, in my experience, neither does the credit card company or the issuing institution. No, the cost of the fraud is already being eaten by the merchant seller.
There are some exceptions to this, mostly if the issuing institution didn’t do their due diligence in protecting the merchant from the fraud, but how often do you think they actually own up to that when its their bottom line that gets eaten into? Not very often. The merchant can participate in an insurance program that will cover the loss from fraud, but that increases the cost of every transaction, so the merchant is really just playing a game of losing less.
Its only in a very small number of instances, in terms of fraud, that the liability shift will help the merchant in any way. Better than nothing, right? Maybe not.
Second point goes to the entire process of EMV. Card swipes are cheap, easy to implement and thus, easy to defraud. EMV is none of these things. There is currently only a single EMV reader approved for use in the US market. What’s worse, that device must have its certification renewed every 3 years. If a merchant purchases one at 2 years and 364 days, it immediately has to seek recertification of the device the following day. If the manufacturer has decided not to get the certification done themselves, the merchant is now responsible for receiving that certification. Planned obsolescence.
But that’s not the only cost. The EMV devices are usually significantly more useful than a traditional swipe, but they’re also significantly more costly. We’re talking $15 for a swipe v/s $500+ for EMV.
Don’t forget your point of sale has to be upgraded to work with EMV AND it also has to be recertified every 3 years as well. You don’t think those upgrades are going to be free, do you?
Third, this isn’t encryption. EMV card data is still transmitted to the point of sale in the clear. The difference is that it also has a generated ID from the card that goes with it that is one time use and (at least as of now) can’t be faked. The CVV data isn’t sent along, so all the card thief gets is the card number and expiration date, which are not nearly as useful. Note I didn’t say not useful at all.
Some banks and credit unions will authorize a card for a transaction with just a correct card # and expiration date. These are not exactly rare, but are getting rarer. To combat this last angle of fraud, those institutions must update their back end processing software. Where do you think they are going to get the money to do that? Higher merchant fees.
So, to sum up… EMV is an improvement, but a costly one, not just one time but every single day. It won’t entirely solve the problem, especially as customers can opt to swipe and not use EMV, which only makes it worse on the merchant in the long run.
I think merchants will upgrade, mostly because no one wants to be another Target, but it won’t be something they enjoy.
This is where I think he actually gets Apple and what they were trying to accomplish. It wasn’t about the specific geeky features or specs, it was about the experience people had when using the device. The iPad went on the become hugely successful because…
This Nest acquisition makes me think Google didn’t want these things to be jokes. That they want to make devices that tens of millions of people will buy and use in the way that they buy and use Apple devices.
Vast Majority of Smartphone Users Care About Privacy - eMarketer
As more of consumers’ lives depend on mobile devices, the chances they have something on their phones they want private has become very high. According to research, about four in five US smartphone users have private files on their devices—and the share…
The Best Approach to the Worst Conversation: "You're Fired"
When you’re a manager, no one is going to make the first move for you. People on your team may have hinted around it. They may have submitted subtle or even assertive feedback. But until you sit down with Jeff and try to turn things around, you’re the…
Microsoft Sets a New Threshold for Windows Development | Developers | TechNewsWorld
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Mobile app market continues its meteoric rise: report - Mobile Marketer - Research
“The most surprising finding is that the rate of new apps being created is accelerating,” said Simon Khalaf, CEO of Flurry, San Francisco. “You would expect it to be flat. The rate itself has doubled year over year.
Review: The Galaxy Note 3 is big—and it pulls some benchmark shenanigans | Ars Technica
USB 3.0 is still going through some growing pains. As you can see above, the Note 3 won’t let you keep USB 3.0 on all the time. You have to enable it just before your transfer, and it will automatically disable itself after four minutes of inactivity.…
“If your UX asks the user to make choices, for example, even if those choices are both clear and useful, the act of deciding is a cognitive drain. And not just while they’re deciding… even after we choose, an unconscious cognitive background thread is slowly consuming/leaking resources, “Was that the right choice?” If your app is confusing and your tech support / FAQ isn’t helpful, you’re drawing down my scarce, precious, cognitive resources. If your app behaves counter-intuitively – even just once – I’ll leak cog resources every time I use it, forever, wondering, “wait, did that do what I expected?”. Or let’s say your app is super easy to use, but designed and tuned for persuasive brain hacks (“nudges”, gamification, behavioral tricks, etc.) to keep me “engaged” for your benefit, not mine (lookin’ at you, Zynga)… you’ve still drained my cognitive resources. And when I back away from the screen and walk to the kitchen… Your app makes me fat.”—Your app makes me fat — Serious Pony
On a recent car ride with the family, when everyone in the car but the driver, me, was asleep, I spent a little time letting my mind free associate on recent technology announcements. One that was really floating through my head was how at the most recent…
“When my daughter was born, I got a nice card from my uncle saying that my child’s laughter would be the sweetest sound I would ever hear. But that’s a lie. Children have two kinds of laughter. The first is the genuine kind, the kind my uncle was talking about. The other is the I’M-ABOUT-TO-DO-EVIL-SHIT laugh. The criminal mastermind laugh. Mwahahahahaha. I dread that laugh because it means someone is about to cry or something is about to fucking break. By the time a child is four or five, this is pretty much the only kind of laugh you hear out of them.”—Someone Could Get Hurt: A Memoir of Twenty-First-Century Parenthood - exclusive excerpt - Boing Boing
“Slazinger claims to have learned from history that most people cannot open their minds to new ideas unless a mind-opening teams with a peculiar membership goes to work on them. Otherwise, life will go on exactly as before, no matter how painful, unrealistic, unjust, ludicrous, or downright dumb that life may be.”—The three types of specialist
“Organic Mechanics are frightening. They have extreme depth of knowledge, but there is no obvious organic thread which ties it all together. Here’s the scary part. There is a thread. There is a purpose. They just aren’t letting you see it. Organic Mechanics will keep you on your heels and just when you think you’ve figured them out, they’ll change everything. I hate that.”—
“Phil’s title should be Humble Math-Addled Keeper of the Peace whereas Felix would be The Dark Lord of Performance and Snark. Their jobs are clearly as engineers, but defining a single title is a slippery exercise in comparing two things that are incomparable.”—Titles are Toxic: Rands In Repose
When your product idea turns into a meme, you’re probably doing something right. I’m referring, of course, to Bang With Friends. It’s the controversial Facebook app that lets you privately nominate those in your Friends network you want to hook up with and alerts you if they feel the same way. This in turn gave rise to Bang With Professionals, a site that takes the same concept and applies it to LinkedIn.
And, not to be er, left out in the cold, today sees Google+ get the Bang With Friends treatment with the appropriately named Bang With Nobody.