Comment by Aloha
5 hours ago
My point is we (in north america) often seem retain outdated technology because of early adopter problems - be it the T1 vs E1 conversation, how credit cards are processed, all of it. We tend to adopt V1 of a technology and have too much of an installed base to easily adopt the considerably improved V2.
And my point is that V1 technology for credit cards happened in the 1950s, V2 in the 1970s and by the time chip and pin came around, credit cards were hardly new technology anywhere in the western world.
Claiming that the US had too large of an install base for chip and pin to work would be like claiming the US had too large of a propeller air craft install base to adopt jet engines (also developed in Europe), but somehow the US managed that transition just fine. Americas failure to adopt chip and pin has nothing to do with legacy, and everything to do with US culture has a different relationship which money and how it’s spent.
In Europe people generally expect to be challenged when spending money using credit cards, and that’s always been true. So chip and PIN was always an easy to sell to consumers. In the US, people simply don’t expect to be challenged, and even get up upset when challenged, when using a credit card. So selling chip and PIN to consumers is much harder, especially when the US so happy to accept exploitative banking practices, and crazy high fraud rates.