FTC to Scrutinize Contactless Payment Technology

coondoggie writes to tell us that the Federal Trade Commission (FTC) will be taking a look at contactless payment systems and the consumer protection issue surrounding them. "RFID technology provides obvious benefits, the FTC said. For example, the ability of producers using RFID to track exactly where in the supply chain their products are and by which retailer they were ultimately sold to a consumer has the potential to make product recalls more effective. However, there also may be costs regarding consumers' individual privacy rights associated with it."

Comments

What I don't get...

[tgd]

Is why we're once again bucking the trend and doing something different?

A lot of the world is using chip+PIN, which while not perfect is still drastically better than what we've got, can't be sniffed from remote, is much more of a distinct action and has a huge install base.

I'm not sure what this obsession with RFID payment methods is.

Re:What I don't get...

[gnick]

Thats why you have two hands. Cover your PIN with your other hand. No it's not. I have two hands because my ancestor who first developed a mutant hinge at the end of his stubs had two arms.

But, now that I have these two wonderful hands, covering up my PIN is one of the things I can use them for.

We are too lazy..

[Junta]

When doing anything that requires something to physically touch is considered too much work and we'd rather risk our financial info being wirelessly transmitted than have to swipe a card, we have serious issues.

And all this about inventory tracking is kind of an orthogonal point to payment isn't it? I for one certainly don't mind them being able to wave rfid wands around a vague area and account for an entire big package without having to scan a unique barcode for every item. I wouldn't mind a checkout system where they didn't even need to find the upc (or for that matter, could scan the whole cart in one go instead of item by item). However, I don't see the big benefit of avoiding physical contact with my payment device (which I wish was more technically secure than my mag-stripe credit card).

Re:We are too lazy..

[Chosen Reject]

I wouldn't mind a checkout system where they didn't even need to find the upc (or for that matter, could scan the whole cart in one go instead of item by item).

I'd be bothered by that. Well, not me, but my wife would. She watches as each item goes by to make sure that the price they are charging is the price that was on the shelf. I just let it go, but it seems that nearly every time she does the shopping at least one item is priced higher at checkout than on the shelf, and because they do it one item at a time, she can catch that easier.

Maybe with RFID being used the entire trip from maker to deliverer to stock boy to shelf to checkout then they can keep the prices updated better, but until I see it, I doubt my wife or people like her will end up using any less time at the checkout for this reason.

Re:Lower repair costs.

[Lumpy]

Problem is that the cost of Credit card and Debit card fraud is incredibly small compared to the cost of even giving slightly improved security to the system we have now. The number pad could have dynamic numbers. the numbers on the pad change for every use, scrambled so a camera off axis cant see the numbers from the pattern. Even changing to the smart-card based cards is far more expensive than the amount lost to fraud.

Banks, contrary to what they advertise and tell you, do not give a rats ass if someone steals your money or identity. So they will do as little as possible to make sure information is secure. If it costs them money, they will do everything possible to not do it.

The RFID based card system has even died. Most banks did not offer the cards and almost every store and restaurant I saw that had the readers installed now have them removed, almost everyone is abandoning it. Glad to see the government researching a dead technology. I wonder when they will research if the 6809 processor is safe for use in space.