Chip & Pin Credit Cards issued by European banks

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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spetho2001
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Chip & Pin Credit Cards issued by European banks

Postby spetho2001 » Wed Nov 25, 2015 3:01 pm

Chip & Pin Credit Cards

3:14 pm, today




I am assuming all credit cards issued by Italian banks use CHIP & PIN technology. I believe, if I am correct, that they only work if you are at an ATM machine where you can punch in your PIN number. My question would be, how do Italians order stuff from a mail order house such as Amazon, using the telephone or the Internet when there is no way to enter their PIN number?
Thank you,
TomS


CC Deville
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Re: Chip & Pin Credit Cards issued by European banks

Postby CC Deville » Sat Nov 28, 2015 8:37 am

Chip cards only work at Point Of Sale (POS) terminals and ATMs/ABMs. For online shopping, chip cards work the same way mag stripe cards work online; the cardholder (or fraudster) enters the credit card account number, expiration date and CVV2 code (the three digit code on the signature panel). I believe that banks should improve CVV2 security by requiring the cardholder to get a one time CVV2 code via email or text message (only to known, established emails/telephone numbers) in order to make online purchases. It would be a pain sometimes but if it could prevent a worthless West African, Eastern European or former USSR fraudster from ill-gotten gains from the rest of the civilized world, it would be worth it.

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spetho2001
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Re: Chip & Pin Credit Cards issued by European banks

Postby spetho2001 » Sat Nov 28, 2015 1:38 pm

CC Deville wrote:Chip cards only work at Point Of Sale (POS) terminals and ATMs/ABMs. For online shopping, chip cards work the same way mag stripe cards work online; the cardholder (or fraudster) enters the credit card account number, expiration date and CVV2 code (the three digit code on the signature panel). I believe that banks should improve CVV2 security by requiring the cardholder to get a one time CVV2 code via email or text message (only to known, established emails/telephone numbers) in order to make online purchases. It would be a pain sometimes but if it could prevent a worthless West African, Eastern European or former USSR fraudster from ill-gotten gains from the rest of the civilized world, it would be worth it.

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Are you referring to U.S. issued credit cards or Italian/European cards?

takeshi
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Re: Chip & Pin Credit Cards issued by European banks

Postby takeshi » Sat Nov 28, 2015 3:19 pm

spetho2001 wrote:I am assuming all credit cards issued by Italian banks use CHIP & PIN technology. I believe, if I am correct, that they only work if you are at an ATM machine where you can punch in your PIN number.

One can punch in the PIN on an EMV terminal as well. PIN's are not just for ATM use.

FYI the M in ATM is for Machine. The N in PIN is for Number.

spetho2001 wrote:CMy question would be, how do Italians order stuff from a mail order house such as Amazon, using the telephone or the Internet when there is no way to enter their PIN number?

The same way we do in the US when a mail order vendor requests the CVV2

spetho2001
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Re: Chip & Pin Credit Cards issued by European banks

Postby spetho2001 » Sat Nov 28, 2015 8:02 pm

takeshi wrote:
spetho2001 wrote:I am assuming all credit cards issued by Italian banks use CHIP & PIN technology. I believe, if I am correct, that they only work if you are at an ATM machine where you can punch in your PIN number.

One can punch in the PIN on an EMV terminal as well. PIN's are not just for ATM use.

FYI the M in ATM is for Machine. The N in PIN is for Number.

spetho2001 wrote:CMy question would be, how do Italians order stuff from a mail order house such as Amazon, using the telephone or the Internet when there is no way to enter their PIN number?

The same way we do in the US when a mail order vendor requests the CVV2

You might be interested in these post from other people that I believe live in Europe. From these post I gather that the credit card does not work exactly the same as in the U.S., as I have never had to get my card verified.
Other post
Italian Mastercard runs their own authentication website/system.




You go the merchant website and place your order. They redirect you to the Mastercard site. You log into that site and approve the charge.




So having the CC number isn't enough.




Amazon doesn't do this. But smaller merchants tend to.

Anywhere in the world, you might be redirected to Verified by Visa or the Mastercard equivalent for some further authentication, but many web sites do not require this.

Correct Nick my UK issued Visa credit card will always go to the the verified by Visa site for further authorisation.for online payments. My Mastercards however are not registered with the MasterCard equivalent authorisation so although you get transferred to the site it does skip this process.

I do realize that the N is for number and the M for machine, but thank you for trying to help me with that.

CC Deville
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Re: Chip & Pin Credit Cards issued by European banks

Postby CC Deville » Sat Nov 28, 2015 9:25 pm

spetho2001 wrote:Are you referring to U.S. issued credit cards or Italian/European cards?


Both. Online/phone purchases are card not present (moto) transactions. They do not require a PIN and instead require the expiration date and CVV2 number. Often times, at least in the US and Canada, a billing address is required at checkout and that billing address will need to match the ZIP Code/postal code of the credit card. If the ZIP Code/postal code does not match, the transaction could be declined; however, I am not certain if this would be the case with Eurozone cards.

The PIN is only for card present (POS) transactions. The chip essentially proves that the right person has the card; that it has not been stolen or counterfeited. Europe had a major problem with pickpockets and counterfeiters which is one of the main reasons they went with Chip + PIN. Chip + PIN is now a 20+ year old technology; however, and was developed prior to the Internet taking off; and therefore, does not really protect against fraudulent online purchases. Now that the US has finally joined EMV, I expect changes will be made to online transactions in the near future as more fraud is being shifted online to avoid EMV.



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