Critics-call-credit-card-chip-in-US-joke

Why critics call the imminent credit card chip system in the U.S. ‘a joke’

The way Americans spend money is on the verge of its biggest change in decades, but the drumbeat of doubters continues to get louder. New chip-enabled credit cards are slowly getting into consumers’ hands in advance of a looming deadline later this year. But a Walmart executive recently told CNN that U.S. chip cards are a “joke,” and a new report examining other countries’ changeovers suggests criminals around the globe merely switched tactics and kept right on stealing from consumers’ accounts.

The switch to chip cards goes by the shorthand EMV, which stands for Europay, Mastercard and Visa. In Europe, when banks implemented the change, government rules forced consumers to start using credit cards like debit cards – requiring that PIN codes be entered each time a card is used. The change adds two important levels of security, or two-factor security. To complete a transaction, buyers need to have in their hands a chip card, which is incredibly challenging to counterfeit. And they must know something — a PIN — that’s not on the card.

The U.S. is poised to implement only half this system. Chip cards must be accepted by merchants by the fall deadline, but not PINs. The so-called “chip & signature” system is a half-measure, according to Mike Cook, Wal-Mart’s assistant treasurer and a senior vice president.

“The fact that we didn’t go to PIN is such a joke,” Cook told CNNMoney.com.

For example, a criminal who physically steals a chip & signature credit card will have no trouble using it to commit fraud in a store by faking the consumers’ signature.

Meanwhile, a report issued recently by analyst firm Mercator raises even more concerns that the switch to chip cards might not reduce fraud, but simply nudge criminals towards different fraud.

“Unless the payment industry tackles other growing concerns like lost and stolen card fraud, overall fraud losses will continue to spiral up toward pre-EMV levels,” the report says.

Why? So-called “card-not-present” fraud is on the rise in places that adopted EMV long ago, according Mercator’s Tristan Hugo-Webb, who is Associate Director of the Global Payments Advisory Service.

For example, the United Kingdom was one of the first countries in the E.U. to complete the switchover to EMV back in 2006. While counterfeit card fraud has shrunk — from 27 percent of all fraud in 2003 to 13 percent in 2013 — other kinds of fraud have soared. Card-not-present fraud, which includes online and telephone sales, has climbed from 29 percent of fraud in 2003 to 67 percent in 2013. Chip cards have no impact on online or telephone sale fraud because the chips cannot be used for authentication.

So as e-commerce has risen, online fraud has risen right along with it. In the U.K., there has been a sharp increase since 2011, Hugo-Webb says.

New technologies that would add a layer of authentication to online purchases, such as electronic tokens that help verify consumers remotely, have been invented but have not been implemented.

“The hope is that with the creation of new security technologies like tokenization, the industry can begin to play offense rather than always having to play defense against payment fraud attacks,” Hugo-Webb says.

The trickiest part of the migration is that the U.S. is so far behind – at least a decade behind the U.K, for example – that new payment forms, such as mobile payments, may have overtaken old-fashioned plastic cards by the time the EMV adoption is complete. To some observers that lessons the urgency of the changeover.

But Hugo-Webb says the U.S. must still migrate, even if the step doesn’t reduce fraud. It’s more a matter of holding serve, he said.

“If the U.S. decided to skip EMV….it would be more of a target than it is today,” he said. “There is still value in migrating….it’s going to take a lot longer than people expect for mobile payments to really become commonplace.”

Because of the decade-long delay, however, the value of the upgraded security will be less in the U.S. than it was in Europe, however, where banks enjoyed at least a few years of reduced fraud before criminals caught up. Here in the U.S. criminals already have quite a head start on their EMV workarounds.

That fact should help inform banks and merchants as they consider how much to invest in new forms of security for the coming generation of payment systems.

3D-printed-car-for-just-1770

Chinese company creates 3D-printed car for just $1,770

Chinese 3D tech company Sanya Sihai has created a bright orange electric-powered sedan which cost just $1,770 to manufacture.

Sanya Suhai unveiled the vehicle, China’s first 3D printed car, on Tuesday in the country’s southern Hainan province.

Building the vehicle reportedly took 1.5 months, with the printing part of the process taking about five days.

“The density of the material is much lighter than that of the metal, only one-seventh or one-eighth,” chief designer Chen Mingqiao explained. “Lighter weight will help save energy in the future.”

The fully functioning sedan was printed in a filament dubbed ‘Tyrant Gold’ and cost just $1,770 to build. It was printed using low-cost composite materials.

The vehicle, which is powered by rechargeable batteries, can reach speeds of up to 40 kilometers per hour (24 mph).

The world’s first 3D printed car, the Urbee, was created in the US in 2013 by design firm KOR EcoLogic, direct digital manufacturer RedEye on Demand, and 3D printing manufacturer Stratsys. Last year, the Arizona-based Local Motors printed the Strati car. The company has plans to custom print 3D cars for clients on demand.

Once more are produced, the Urbee’s sticker price will likely be between $16,000 and $50,000, while the Strati will probably cost between $18,000 and $30,000.

Last Spring, Chinese company WinSun Decoration Design Engineering Co. printed 10 single-story 3D-printed homes in under 24 hours. In January, WinSun used 3D printers to create a five-story house using construction wastes. It was the tallest building to ever be 3D printed.

BBB Warranty Quote

Red Auto Takes Auto Extended Warranty Coverage to an industry leading poll position

Red Auto Takes Auto Extended Warranty Coverage to an industry leading poll position

 

Newport Beach, CA IJR NEWS – HeadlineNews.guru – 1/21/2015

 

Warranty Quote, a division of Red Auto Protection, unveils their latest auto coverage industry exclusive auto protection and also announces that they are now servicing their own policies.

 

Assuring their customers get the best auto coverage and not the best policy for a salesperson is the first priority we have accomplished says Red Auto’s CEO Elijah Norton. “Our customers come first, with this change comes adding our own administrator, which allows us to cater to the type of coverage we can provide.  This gives us control of the claims process which is a characteristic that most other companies can’t match.  I think the best part best part of this is that our contracts have been written so that customers don’t have to have a law degree to understand them.”

 

warranty quote's piece of mind
warranty quote’s piece of mind

Red Auto’s direct enhancements seem to be the correct moves that could very well  propel them to the top of used car extended protection food chain. Over the years this industry has righteously earned  the often referred to “fly by night”  reputation and is highly scrutinized industry.  Much regulation has taken part of this changing profession regarding auto protection and the “extended warranty” industry referred staple services.

 

With only a handful of credible  extended car coverage companies, (BBB A rated companies), Red Auto has took pride in its recognized reputation since  its beginnings several years ago.  On, January 19, 2015 Red Auto took the next leap in announcing the creation of it’s industry only coverage plans  and  direct servicing of claims that puts them in a class of their own.

 

Until this announcement by Red Auto, depending on their coverage level, consumers were limited by every company in the industry in that they could usually only purchase an enhanced powertrain  policy to fulfill the void for their manufacturers   warranty termination time and their additional coverage policy.  Red Auto will now offer   premier and premium coverage in between the expiration of auto manufactures warranty and 100,000 miles.  Additional powertrain coverage will also be available up to 190,000 miles.

 

Warranty Quotes, Public Advisor, Christopher John, told Headline News Guru, “Before investing thousands into a vehicle, and even more for an extended or premium warranty, it’s important to know what parts of the vehicle are covered under the warranty or protection plan. Many consumers believe that a warranty or protection plan covers you bumper-to-bumper, but every policy has limitations.”

 

“Red Auto has literally took the ambiguity out of traditional claims and put the customers first, this kind of service and customer focused strategy adds a new level to extended coverage that is going to make the competition non existent when comparing apples to apples. And if other companies feel they can match this coverage, they will have to earn their customer reputation like we have. Consumer reviews and customers repeat business ultimately control our success, we rely on this. It is probably the best feeling for a customer to talk with the same company when dealing with a claim, rather than having call a third party that really has no interest in them.”

 

Finally John advised customers to check for limitations in their policies,  some warranties have maximums for the amount they will spend on a type of repair.  He also said to, consider extra coverage and check out warranty tier options offering extended service or coverage for air filters, oil changes, tune-ups and similar items.

 

CC Reginald Parker

Senior Journalist

IJR News Assistant Editor in Chief