Tis the season, and all that other stuff. What is the best time for the contact card on the «chip and PIN» card to be disconnected from the micro-controller inside of my credit card. While inconvenient, it has a system of users. It’s difficult to say who decides the variation of fallback methods, the merchant or the processor; both have incentives to do so.
Fallback modes that I’ve noted:
3 chip failures -> fallback to magnetic stripe, cashier must enter transaction amount and include CVV.
3 chip failures -> fallback to magnetic stripe, cashier must enter the transaction amount, but no CVV required.
3 chip failures -> fallback to magnetic stripe, customer swipes card.
1 chip failure -> fallback to magnetic stripe, customer swipes card.
So the mode where the cashier has the chip, and PIN, the whole transaction, including the CVV, means that the vendor will get a better rate on processing. This method also offers the most scrutiny of the transaction. Note- Most banks make «chip and PIN» transactions zero liability for the bank and merchant, not for the customer.
All of the «3 chip failure» scenarios are very interaction-heavy, there’s really no way for the cashier avoid noticing that there’s something wrong; your transaction is not normal, and it’s very slow.
It’s the «1 chip failure» scenario, that’s the most interesting, and the easiest to test: just put the card into the reader using the wrong end (if you do not have a broken card like I do). It seems that there is no conductivity test done, but a simple physical detection mechanism (a switch, or possibly an IR beam break) is used. The reason that I learned this is because of the grocery store cashier wanted to generate three failures as fast as possible, to get to the fallback, so he could continue to do his job.
You’re not going to be able to use the wrong time.
What this preparations is, you do not need to know the PIN. The main goal of the merchant and credit card is to buy things, so there is a fallback mechanism that will always allow the transaction to proceed with the exception of deactivated cards. If you have a lost / stolen credit card, do not assume that «chip and PIN» will. Contact your issuer immediately to have it deactivated.
If someone is more enterprising, they could remove a segment of the contact, sever the connection and reattach it. (Update 2014-01-17: I missed an easier method: a physical barrier, like clear nail polish.) Credit @info_dox, who credits UK researchers for finding this.) This allows them to get to the fallback scenario every time, but will obviously will draw more attention to the transaction. There is a way to combat the fallback scenario, which is used in the US, as «chip and PIN» is not common. I have not had an ID checked at all during the time that my credit card’s «chip and PIN» has been broken. Not once.
As far as I can tell, the main attraction of «chip and PIN» is for credit cards.is to move the liability from the issuer to the cardholder.
NOTE-this is an old and common way of bypassing chip and pin,if you have an updated guide,please share it!!! dumps shop cvv