> For you as the card holder however, nothing has changed in that regard: The law in the US still stipulates that credit card holders can only be liable for up to $50 (which most banks waive these days.)
Nothing has changed yet. But why would you think the banks won't target consumers once they've made merchants bend over?
Even judges and politicians understand simple technology like the magnetic strip. The banks wouldn't get away with arguing that the consumer was at fault if someone steals his credit card or credit card number because it's obvious that signatures are easily faked and never checked anyway and cards can be copied just like those old floppy disks.
But now we have this "magic" chip/paywave/etc. Your Honor, the technology ensures that the card can only be use by the authorized user. Cryptography and all that. So the "technology" protects consumers. We don't need silly, job-killing things like laws and regulations. Let's repeal these unnecessary liability limits. It will bring prices down and "economic efficiency" and that's how the Gipper woulda' wanted it. (Anyone with common sense, and economists [mutually exclusive groups] know the price bit is bunk, but..)
We technology professionals know the technology protects nothing if the POS terminal (which tells the clerk the user really has paid), the card itself (where a private key is stored), and all the algorithms and algorithm implementations (which ensure approval can't be faked) are secure. All of which the consumer has zero control over (we may have the card, but we didn't design its tamer-resistant features that erase rather than reveal the private key).
Someone duplicated my card in Mexico one time. The bank said it was a card-present transaction, but I had my card and my airline record verified that I wasn't even in Mexico when the transactions occurred. So I paid nothing. But what happens when a chip-based card is duplicated. The bank says I must be lying because their technology makes that impossible. The judge believes the bank's pin-striped-suit-wearing IBM security consultant even though everyone knows that no one who wears a suit can possible be a technology expert. And consumers are stuck with the charges.
It happened with bankruptcy in 2005. Bankruptcy is no longer a fresh start. Student loans can't be discharged and your creditors can garnish your wages for the rest of your life (since the interest rate will ensure you never pay off the loan). And what happened? Student loan rates aren't much lower, tuition is MUCH higher, and the banks lent like gangbusters to anyone with a pulse (which, at the same time, drove up prices, draining the savings of anyone who didn't borrow from into their coffers in the form of stock dividends). They obviously never expected to make the money they loaned back on the original terms. They wanted guaranteed income from the wages of everyone who defaulted, a slow and steady trickle of cash from the poorest among us (an ever larger percent of the population). After all, why should government be the only entity allowed to levy taxes?
Credit card law will change the same way. In fact, the 2005 BAPCPA was a precursor to these changes. Without it, a shift of liability to consumers would just push consumers into bankruptcy, drying up the bank's revenue stream. But now all they lack is shifting the liability to consumers. They then have not only no incentive to prevent fraud (even though, since they control the technology, they're the only ones who could), but an incentive for it to happen (undischarged debt). And incentives work.
The 2005 BAPCPA ensures we have to pay whatever debts they say we owe.
Checks are already almost a thing of the past, not accepted at many stores, so you pay with your credit card.
The shift of credit card liability and further shift of debit card liability to consumers will happen next. When it does, start using cash. And start carrying a gun to protect you now cash-laden self.
Until, if course, the courts invalidate the 2nd amendment and stores stop accepting cash (too much crime or some junk) just as they already have for checks.
Its the return of slavery in no uncertain terms. I wish they'd just invalidate the 14th amendment already so we could get on with the inevitable revolution and save everyone time. All this waiting is killing me!