QuoteOriginally posted by: hayesQuoteOriginally posted by: Traden4AlphaBlame the U.S. banking & credit card industry which still uses the magnetic-strip technology for almost all cards....... (In turn, this difference is due to cheap landline telephones in the US, but that's another story!)Do tell?...... Surely it's not to do with lack of bandwidth between the ATMs and the banks servers, is it?Actually, it's because everyone in the US got a landline (with "free" unlimited local calling) before the advent of smartcards. Hence, payphones were never very common nor very heavily used so the US never deployed the chip-based smartcard technology so widely used in Europe. Hence, no one in the US uses this technology and the entire ATM and POS credit card network uses mag-stripe devices. Moreover, low-cost landlines meant that US retailers switched to online verification pretty early which reduced one of the advantages of smartcards for credit cards.
Last edited by Traden4Alpha
on May 30th, 2012, 10:00 pm, edited 1 time in total.