Comment It could be so much better. (Score 1) 221
With NFC phones you could make an almost crack proof system. Since the phone has a second line of communication it could use NFC to generate an an encrypted transaction with the merchant terminal and then use it's cellular connection to verify that transaction with the bank, and at last the merchant terminal would use it's network connection to the bank to finalize that transaction. Yes that means both devices need a working network connection to make the transaction work, but it would be super secure since there would be no CC number. Each transaction would be unique and unrepeatable. The bank would get verification from both the merchant and the customer for each transaction.