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(The Consumerist)   About that whole "enter your zip code" security thing when swiping your credit card   (consumerist.com) divider line 16
    More: Fail, Redbox, credit cards, CBS Sacramento  
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9336 clicks; posted to Business » on 19 Oct 2013 at 8:43 AM (40 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-10-19 01:28:18 PM
2 votes:

sure haven't: Canadian here. Whenever I'm in the states and try to fill up- well first of all why are ALL Your gas pumps pay before you pump?? Did everyone start stealing gas or something?


Yes

It pretty much became universal around 2008 when gas prices spiked and there was a huge nationwide wave of gas drive-offs.  Despite laws making that punishable by driver's license suspension, the easiest way to end the problem was to just make it so a gas pump doesn't work until it's already paid for.
2013-10-19 11:36:48 AM
2 votes:

Nuclear Monk: Would it kill them to fix this little gem of an interaction?:

Debit or Credit? Credit
<swipe card>
Debit?
FARK YOU DID I STUTTER?!?!?!?


That's just them trying to avoid CC fees.  They really really want you to use your debit card.
2013-10-19 11:25:43 AM
2 votes:

Nuclear Monk: Would it kill them to fix this little gem of an interaction?:

Debit or Credit? Credit
<swipe card>
Debit?
FARK YOU DID I STUTTER?!?!?!?


I suspect there's still a few banks that charge the customer a fee for one, but not the other.

I used to say "Whichever works better for you", which would usually be debit since the merchant gets charged a lot less.  But I found that debit transactions show up on my bank account as "POS Sale 12345 Main Street" and I'd have to go reverse search the address to figure out where I spent that money.  Credit transactions show up as "Checkcard:  Bob's Bait and Sex Toy Shop".
2013-10-19 10:36:13 AM
2 votes:
If a zip code (any zip code) is entered for a credit transaction you will get a better rate for a kiosk based transaction, but only the proper zip code will protect the merchant from chargebacks. In this case redbox is paying less to the credit card company, but the customer could turn around and say they never authorized the charge and get their money back.
2013-10-19 10:28:10 AM
2 votes:

sure haven't: Anyways, putting my card in, it never recognizes that it's Canadian, and then asks for a zip code.


Enter the 3 numbers from your postal code (ignoring the letters) followed by '00'.
2013-10-19 02:14:38 PM
1 votes:

phillydrifter: Saners: Better off paying inside anyways.

Thieves put card-readers on gas pumps. Pay inside.


http://www.gobankingrates.com/credit-card-rates/5-tried-true-strateg ie s-protecting-credit-card-gas-pump/

relevant
2013-10-19 01:55:45 PM
1 votes:
I used to work for a credit card processor.  The ZIP Code is just one layer of security that the cardholder's bank or merchant can use to deny a credit card transaction if it's incorrect - but, few do.  Credit card transaction rates (the percentage a merchant is charged on the transaction) are based on the level of security.  Just requiring a zip code alone will often give a merchant (Redbox) a better rate on the transaction.  Even if the ZIP doesn't match... just asking for it could help them save money b/c it's considered less risky.  If the ZIP matches what's on file, it could get them an even better rate.  The cardholder's bank knows what info was submitted and can deny the transaction if the ZIP is wrong.   The merchant knows when the transaction comes back whether the ZIP matches what the bank has on file or not (It's a simple Yes/No reply).  The merchant (Redbox) can choose not to take the card if the ZIP comes back as being incorrect.

If you're putting in the wrong ZIP to "fool the machines", that's fine... but most likely all they're doing is using address verification to get cheaper rates.
2013-10-19 12:34:58 PM
1 votes:

Ivo Shandor: sure haven't: Anyways, putting my card in, it never recognizes that it's Canadian, and then asks for a zip code.

Enter the 3 numbers from your postal code (ignoring the letters) followed by '00'.


I've successfully used this method with Visa. MasterCard supports it now too. Not sure about Amex or others.

http://www.theglobeandmail.com/life/travel/travel-news/finally-canad ia ns-able-to-pay-at-us-pumps-with-credit-again/article13463053/
2013-10-19 11:53:01 AM
1 votes:

sure haven't: Canadian here. Whenever I'm in the states and try to fill up- well first of all why are ALL Your gas pumps pay before you pump??


Yeah, drive-offs are an issue in some places.
2013-10-19 11:29:24 AM
1 votes:
Just implement chip and pin like the rest of the world then.
2013-10-19 11:00:28 AM
1 votes:

sure haven't: Canadian here. Whenever I'm in the states and try to fill up- well first of all why are ALL Your gas pumps pay before you pump?? Did everyone start stealing gas or something? There isn't one single pump where I DON'T have to pay first (none that I've found anyways, so that means it isn't available anywhere ;) )

Anyways, putting my card in, it never recognizes that it's Canadian, and then asks for a zip code. I enter 90210, and it comes back with an error. Then I try to enter my postal code hoping that it'll understand the alphanumerical-ness. No dice. So I have to walk my ass inside, pay at the cash, then go out and pump gas. However you better guess right, because they won't refund your card. You have to call and get your cc company to fight them for it.

/I had a point here somewhere...


You've never been to upstate New York or some places in Vermont then.

/ Stewart's is awesome.
2013-10-19 10:14:00 AM
1 votes:
Canadian here. Whenever I'm in the states and try to fill up- well first of all why are ALL Your gas pumps pay before you pump?? Did everyone start stealing gas or something? There isn't one single pump where I DON'T have to pay first (none that I've found anyways, so that means it isn't available anywhere ;) )

Anyways, putting my card in, it never recognizes that it's Canadian, and then asks for a zip code. I enter 90210, and it comes back with an error. Then I try to enter my postal code hoping that it'll understand the alphanumerical-ness. No dice. So I have to walk my ass inside, pay at the cash, then go out and pump gas. However you better guess right, because they won't refund your card. You have to call and get your cc company to fight them for it.

/I had a point here somewhere...
2013-10-19 09:59:32 AM
1 votes:
Isn't it kind of silly to ask for a zip code when the microchip on the card already requires a PIN?

Oh wait, USA. Never mind, carry on.
2013-10-19 09:29:26 AM
1 votes:
It's not very strong security anyway. If you find a CC, it's most likely in a wallet with other ID that have your zip code on it already. If you find a CC just laying on the ground by itself, chances are good that entering the zip code of where you found it would be correct (or the next zip over). Three tries will probably net you access to most cards.
2013-10-19 09:05:18 AM
1 votes:
Would it kill them to fix this little gem of an interaction?:

Debit or Credit? Credit
<swipe card>
Debit?
FARK YOU DID I STUTTER?!?!?!?
2013-10-19 08:53:08 AM
1 votes:
I worked for a few years at a business where one of my jobs was manually typing in credit card information to handle payments. What I've found from my somewhat limited experience with it is that not all credit card companies do it. Sometimes it would ask for the zip code, sometimes not. Sometimes it would ask for the s-code, sometimes it wouldn't.

There's also the case where the card isn't actually being checked 'live', meaning that all it's doing is sending out a check for a quick pre-authorization (again, something I used to do for a different job). In most cases the pre-auth only checks that the funds are there, so it may not check the zip code against the companies' records at that point, but it may flag it later when the pre-authorized charge is settled (something we would do at closing time)

Of course there also remains the possibility that they're just collecting the zip codes for marketing purposes, in violation of the law in some states. But there's also a valid reason why the zip code check doesn't work in some cases.
 
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