[Mb-civic] Plans for fraud liability to shift from bank (issuer) to credit card holder.

[George R. Milman]

Not only will there be significant a loss of privacy and greater exposure to
fraud by virtue of the depth of information contained directly on the card
with smart (credit) card technology, but apparently there is also a move
afoot to shift the risk of loss from the issuer to the cardholder when (not
if) the hacker community works out how to access all that smart stuff.
Anyone surprised please raise your right hand.

 

GRM

 

-------- Original Message --------

Subject:    "the liability in case of fraud will shift from issuers to

acquirers"

Date:       Wed, 06 Jul 2005 17:32:00 -0600

From:       Tony Toews <tony at tonytoews.com>

To:   Declan McCullagh <declan at well.com>

 

 

 

Declan

 

There was an interesting sentence in a press release with respect to using
smart cards in Canada.

 

http://www.oberthurusa.com/pdfs/2005/07-05%20Oberthur_Metaca_joint%20pressre
lease_final.pdf

 

"With a market of approximately 55 million cards, it is anticipated that
issuers will start deploying smart cards in 2006 with critical mass expected
by 2010, after which the liability in case of fraud will shift from issuers
to acquirers."

 

Who are acquirers?  Joe Consumer?   If so why would the liability

shift?   What if the systems have been broken by then?

 

I can appreciate that credit card and debit card fraud rates are quite high
and that newer, more secure technology is quite reasonable.

However assuming that the cardholder is automatically at fault bothers me.

 

Tony

 

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