How does this work for online retailers? How do I get my own time pin out of the card? Does this mean you can't save a credit card anymore?
As someone in the UK where we have had chip and pin for years it does not change online purchases one little bit.
All chip and pin does is replace the bullshit signature with entering a pin. This is important because it prevents two types of attacks that used to be commonplace:
1) Have a friendly guy in the shop who didn't look too closely at your signature in return for a couple of quid.
2) Have a moron in the shop who didn't look too closely at your signature.
Both of these are pretty common place when you realise that working in a shop is basically a McJob with no real future. done by kids mostly paid barely minimum wage. Even if you get fired for repeatedly not noticing you took a stolen card you will get another job in some other shop in no time.
The reality is that you guys in the states have to start using chip and pin, or you can forget ever travelling to Europe where most of our terminals and moving to PIN only. Within a few years most retailers over here will have blanket bans on signature transactions, quite a few do already.
Oh, and I know it is not actually that much more secure, if it is at all as now the pin is stored on the card in encrypted format and not sent to the bank but that does not change anything. The attacks you can mount it are fairly high tech ones, which will always be an issue and not the banks priority. Chip and Pin is designed to beat the low tech, commonplace attacks I describe above that are done en-masse by thousands of chancers that cost banks a fortune (here in the UK banks are liable for this sort of stuff, unless that can prove you were negligent).