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Driver's License to be the Next Debit Card
prostoalex writes "Your US driver's license has a magnetic stripe with unique ID in it, and your debit card carries a magnetic stripe with account information on it, so why not link the two together and allow people to use their driver's licenses as debit cards? That's precisely what a young company National Payment Card is doing in select locations, according to Business Week: 'Gas-station owners are pleased with the program too. Because NPC processes the payment as an e-check with the Automated Clearing House (ACH), a network most commonly used for direct deposits, participating retailers bypass credit card companies such as Visa and Mastercard.'"
It's not for me, but I can see where some people would like this. One less card to carry around and potentially lose.
So now someone can steal my identity and my credit in one card?
I would like to be the first to say this is a really bad idea.
Get a web developer
As of today, driver's licenses and ID cards are state-specific. Layout, extra features (barcode, magnetic strip), anti-forgery techniques, etc are all decided on a state-by-state basis. If you move to a different state, you need to get a new license from that state within a certain amount of time (usually it's within a few weeks of establishing permanent residence). In order to roll out a nation-wide license-as-debit card program, either states will have to standardize on specific extra features like a magentic strip and what information is stored there, or licensing will have to be handled by the federal government.
As a believer in states' rights, this looks like nothing more than an end-run around opposition to a national ID program. If they can get people hooked on using their license as a debit card, nobody will object when the fed steps in to take control of licensing to make it "more efficient".
How about no.
Shall we enumerate some of the problems?
Suspended/surrendered license = no money
Hacked debit card = hacked license
numerous swipes = worn card + license. I'd rather not deal with the DMV any more than absolutely required.
What is the benefit for me? Nada.
The key to successful reduction of identity theft is the ability for revokation NOT only by grantor (state) or clearinghouse (credit bureaus), but most importantly, the grantee (the end-users).
Without the end-user being able to revoke a stolen card, the whole system is worth squat, security-wise.
And none of that clear-text personalized info on the magstrip, thank you very much, NO!
Yeah, government and business working in collusion, more so than usual.
How is the government colluding in this? Near as I can tell, it's just private enterprise.
I see where this is going: National ID, financial account ... next is it medical data stored on same card?
Heck, this card will be TOO important! What if it is lost! Why, I can't be identified, buy or sell, get health care... you'd better just tattoo the damn number on my arm and forehead.
No, thanks.
-- @rjamestaylor on Ello
I refuse to use debit cards at all (as opposed to an ATM card or a credit card), because they draw directly from your account and they don't require an independent piece of verification (like a PIN) to use.
Now that depends on the debit card, doesn't it?
There's nothing to prevent this company, or one like it, from requiring a PIN to transact business when you identify via driver's license.
At least a debit card can be cancelled in the event it's stolen, even though by then it may be too late. How are you going to cancel your driver's license when the DMV is only open Monday through Friday 8-5?
By calling the "card stolen" hotline of N.P.C. and telling them to disconnect your license from your bank account.
Your driver's license is just being used as a key to a database. It's another way to go from a piece of plastic in your pocket to your name and account number - after that it's E-checks on your account with the E-check processing company.
The only real issue I see with this (besides people reading personal data off the plastic) is if the state doesn't make some distinction in the data on the license between a lost/stolen one and the replacement. Without that, once you've had ONE license lost or stolen you can't turn such a service back on for your new driver's license without re-enabling it for the missing one. (Of course you can change the PIN - presuming a PIN is required to use the service.)
Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
It would be more convenient if they would just use a barcode on your neck, or an RFID chip in your arm. Who wants to carry around a drivers license? Also, we need to make it impossible to pay with cash or checks.
Plus there are all these benefits:
1) You can identify where people are at all times
2) You can track every purchase everyone ever makes and where they make it
3) You can use the above to profile almost every action and behavior of every individual
4) You can shut off the ability to buy anything for alleged criminals and political dissidents
Sounds like a great idea. I only hope we can continue to move in that direction even faster.
So when your license is suspended...your account is frozen. Brilliant!
Nope.
When your license is suspended it doesn't keep you from using it as ID. It just keeps you from driving legally.
All this system is doing is using your license as an ID to look up your account in the e-check processing service's database. This keeps on working until the service decides to stop accepting that particular license as ID. (Probably when it expires and/or is replaced with a new one.)
Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
Err... wouldn't that mean that you could pay a traffic fine immediately? Which translates to:
"Do you really want your state government having easy access to your bank account?"
"How fast will the state legislature pass a law requiring the immediate and direct payment of fines via the license/debit card?"
"A hold has been placed on your account for the amount of the fine. The hold will be removed if you are found innocent. Your court date is in 30 days."
Lets make our drivers licences Debit Cards
Hey lets make our drivers licences national ID Cards
Hey lets make everyone in the World have ID cards that can be used as money which makes a world currency
Hey we're too lazy to carry cards anymore, lets have a microchip imbedded in everyone.
God spoke to me.
(Some context: I founded a company that made credit card processing software for Linux (among others) more than ten years ago. My knowledge on the matter might be stale (as of about 2002), but as far as I know nothing about this has changed much.)
This is very bad.
When you use a credit card, you get fantastic levels of consumer protection. By law, you're liable for at most $50 of bad transactions on your credit card, and most of the major payment backbones (Visa, Mastercard, etc) have reduced that to $0 liability over the Internet. There's no burden to reporting the charges as bad - you report the charges and go on with your life and you get a bright shiny new card in the mail in a few days.
On the ACH network, it's very different - it's like you're writing checks (the ACH network is used to settle checks). In other words, you're limited to the laws protecting you from bad checks, which puts the burden on you to prove that the charges did not come from you. Recovery of the money can be a nightmare, which can only be mitigated by the policies of your bank. The law offers you very little protection. Some banks are very good about this, others won't lift a finger to help you unless it's required by law.
Debit cards are bad, but at least their widespread use have made banks familiar with the issues. This is much, much worse.
"It is our blasphemy which has made us great, and will sustain us, and which the gods secretly admire in us." - Zelazny
Plus there are all these benefits...
You forgot the most important one: the cost of implementing the national ID card will be measured in millions, possibly billions, and for the power elite who control government, spending tax money is simply good business.
There's a reason why the US government of today dwarfs the US government of only 50, let alone 100 years ago, both in revenue and power over the people -- and it's not because making government bigger is unprofitable for those in the business of government. Hell, even failure in government is typically rewarded with even more revenue and power. (With enough revenue and power, they can fix anything, right?)