Will Bank Cards Disappear in the Future?

[lsc3]

Are credit cards becoming obsolete?

With advancements in mobile payments, tokenization, and modern security features, the days of physical cards and exposed card numbers may be numbered.

This short post explores the evolution of payment security and why a cardless future could be safer and more convenient for everyone

More here https://www.linkedin.com/pulse/bank-cards-disappear-future-aleksandr-pavlov-zaoqf 

PS: And let's connect! I'll continue post

[Caute_cautim]

@lsc3 

Given the rise in scams, bank fraud at the present time - I don't think we have sufficient controls to eliminate bank cards, given that current systems such as Blockchain are not entirely secure and vulnerable to unknown attacks, including the removal of funds from wallets without anyone knowing it has occurred.

Plus we are in a five year change with Post Quantum Cryptography (PQC), it took the Payment Industry six years with resistance to change from SSLV3 to TLSV1.0 which was under attack at the time.   If it took industry ten years to change from the Data Encryption Standard (DES) to Advanced Encryption Standard (AES) - with the probability that that there is one in 7 chance of current encryption standards being compromised - I personally do not hold much chance of this occurring, given human resistance to change let alone solid proof that systems will be trustworthy and ensure the integrity of holders funds etc.

Regards

Caute_Cautim

[denbesten]

Will they go away? No.  Will they change?  Yes. 

We have already seen embossed numbers replaced with mag stripes, replaced with chip, and now replaced with tap. Yet, the card still persists.

It is easy to add new high-tech gizmos.  The hard part is taking away the old, proven technology.  Cards still have numbers because it is the only practical way to place a phone order.  They have mag-strips because "everyone" can read a strip so it makes a great fall-back plan.  And, swipe technology will stick around for quite a while because it is frequently used for low-risk, price sensitive use cases, such as in-store credit, loyalty cards, etc.

You are starting to see stripes being refused unless insert fails three times in a row, and the rules will get more stringent over time. But bottom line is that the retailers want fallback options because if you can not make your card work, they lose the sale and have to pay someone to reshelve your order.

The only thing I have seen disappear is the digits being raised.  This probably has more to do with cost than anything else.  Embossed cards are more expensive to make, and in-store imprinters have all but disappeared because they create a paper paper charge slip that is expensive to process.

[Caute_cautim]

Hi Travis

Is this an advert, if it is it is not appropriate within this group to advertise such services?

Or have you raised it because Fab Balance has a security issue, which we need to be aware of?

I think you have more problems coming your way, especially as China has just commercialised Quantum Computers and its on the shopping list.  So if you are not prepared one had best pull forward your Post Quantum Cryptography migration, as using existing algorithms may result in the data created moving into the hands of someone who can simply decrypt it - Hack Now Decrypt Later.

Regards

Caute_Cautim

[IB9]

Not really.  Authentication benefits from the something you have.  The physical limitation of a card being in one place at a time helps as a datapoint for fraud.  You can't very well buy lunch in NY and 10 minutes later swipe for a surfboard in Maui.

[Caute_cautim]

Spoiler

@jasse @denbesten @lsc3 @IB9 

But do you trust your mobile phone holding the digital wallet and would you put your entire life on a mobile phone, because that is what it amounts too.  

Even Blockchain as it is currently implemented has been shown to be unsafe even for crypto transactions and in one case someone stole at great deal of funds, directly without leaving a trace at all.

What happens if the mobile phone is stolen or you loose it?  

Does the mobile have a secure enclave and do you have a cold storage wallet rather than purely rely on the mobile firmware itself?  

The modern mobile phones have certain features, that protect the onboard wallet or do we have to ensure ADHD due to watching too many Tik Toc films on a mobile phone?  

I certainly would not trust a mobile phone wallet, until Post Quantum Cryptography and digital signatures are fully implemented - given the amount of attacks going on.

Paranoid, yes, at the present I would agree.

Regards

Caute_Cautim

[denbesten]

@Caute_cautim  wrote:

But do you trust your mobile phone holding the digital wallet and would you put your entire life on a mobile phone, because that is what it amounts too.  

This is really a risk-analysis question, which needs addressed in two parts, likelihood and impact.

As for putting a bank card onto a mobile phone, I measure the likelihood of physical loss/theft resulting in a fraudulent charge as slightly less than a physical card.  In part because when on the phone, there are security controls that will delay a bad actor hopefully long enough for me to get the card(s) cancelled with the bank.  But also because the phone it adds an additional control layer -- the ability to remote-wipe the phone in addition to having the card cancelled.

The added likelihood of loss (as I see it) is that in addition to potentially falling victim to the bank's and the merchant's security practices, one can also fall victim to the phone's practices.

As for impact, my risk tolerance depends upon the type of card:

• If my amusement park gate pass is stolen, I don't much care.  Most likely failure scenario, I am refused at the gate because the card has been used that day.  Due to park rules, I can only use it once per day.  My "return to normal" is having the park reissue the pass with a new number, and finding something else to do that day.  Worst case, the pass is cancelled for fraud and I have to buy a new one for a few hundred dollars.
• Debit cards are the opposite end of the spectrum.  A bad actor can drain all my money out of my account and I have to fight the bank to get my money back. Worst case, all my money is gone from that account, I am subject to overdraft charges, and I can't pay this month's rent.
• Credit cards are in the middle.  The credit card company loses the money up front and asks me to pay it later.  If I lose the dispute, I can pay over time. And at the worst case, I am out the card's credit limit.

Of the two factors, my personal risk analysis is primarily concerned about impact. The greater the impact of loss, the less likely that card is to go in a digital wallet.

This extends into the physical world too. When paying a restaurant tab, I am wiling to use a debit card only if I can tap the card at the table/counter.  If the card leaves my sight or my hand, I use a credit card. 

[wildapeters]

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@lsc3 evgfinecheck

[meetjacob]

Physical cards might not disappear entirely, but they are definitely becoming backup tools. With the rise of biometric authentication and tokenization in mobile wallets, the security gap is closing. However, until global infrastructure and power reliability are 100% everywhere, having a physical fallback remains essential for most users.