credit cards with public/private keys

Have credit card companies every considered something like public/private keys. I don't know the details of how public/private keys work, but couldn't each transaction have a key that the credit card uses to generate a public key that only works for that transaction or at a minimum only for that merchant? The public key could be a credit card number that could be processed using the existing equipment.

I hate the way credit card companies don't care about fraud. Some accountant apparently decided it isn't worth prosecuting anybody, so they pass the costs on to the merchants.

Originally posted by cloudyday
Have credit card companies every considered something like public/private keys. I don't know the details of how public/private keys work, but couldn't each transaction have a key that the credit card uses to generate a public key that only works for that transaction or at a minimum only for that merchant? The public key could be a credit card number that could be processed using the existing equipment.

I hate the way credit card companies don't care about fraud. Some accountant apparently decided it isn't worth prosecuting anybody, so they pass the costs on to the merchants.

They are insured. therefore, they dont care if someone steals your money. So no, they wont put any extra money into developing these things-that would simply cut into their profit margain.

The truth of the matter is, 99% of credit card fraud could be stopped at the merchant level, and that other 1% could easily be stopped by CC companies. They simply dont care, as long as they get theirs.

Originally posted by captaintyinknots

Originally posted by cloudyday
Have credit card companies every considered something like public/private keys. I don't know the details of how public/private keys work, but couldn't each transaction have a key that the credit card uses to generate a public key that only works for that transaction or at a minimum only for that merchant? The public key could be a credit card number that could be processed using the existing equipment.

I hate the way credit card companies don't care about fraud. Some accountant apparently decided it isn't worth prosecuting anybody, so they pass the costs on to the merchants.

They are insured. therefore, they dont care if someone steals your money. So no, they wont put any extra money into developing these things-that would simply cut into their profit margain.

The truth of the matter is, 99% of credit card fraud could be stopped at the merchant level, and that other 1% could easily be stopped by CC companies. They simply dont care, as long as they get theirs.

I agree they simply don't care, but I think it is the banks and processing companies that don't care.

I have a small business that accepts credit cards (mostly over the phone). I always ask for the mailing address to help validate the card. Unfortunately I've noticed the processing company usually ignores the mailing address, because sometimes I enter it wrong and it still goes through. The people who really pay for the fraud are the merchants who pay 2-4% of every transaction to the processing company (or more for American Express). Cardholders only pay those obscene interest rates if they carry a balance, but merchants pay no matter what.