Principles Of Public Finance : Market Failure

The future of payments is current shifting to another path with how technology is changing and is currently modifying how we process our payments and how we store data. It is going away from low-tech and paper based tools, expensive and bulky registers, and physical card swipes. And it is introducing and renovating online commerce and online payment. This is happening due to the decrease of money supply and checks in the current market because people are starting to pay more and more there bills online. As the economy improces and corporations and business gets larger they have started a large-scale implementation of processors in electronic payment technology in their business ands services. Also, credit and debit are growing amongst consumers and it has been the highest that it has even been in history.

Transaction have become more efficient. Electronic payment systems help increase the time of payment and also decrease the crime of theft. For example many people pay through apple pay, through applepay there is no paper money involved just credit cards. Although electronically payments have a negative factors for those who are able to hack into the system and receive credit card data , and be able to take your information and use it for their own needs without you knowing. You are still able to cancel the use of your credit cards and receive your money

Along with EMVco, there are various stakeholders who are crucial to the successful adoption of EMV. They are namely the merchants (acceptors), acquirers/processors, issuers/banks, payment system integrators and value-added resellers (VAR). While deployments

It is likely that the huge number of card breaches at U.S.-based organizations over the past year represents a response by fraudsters to upcoming changes in the United States designed to make credit and debit cards more difficult and expensive to counterfeit. Non-chip cards store cardholder data on a magnetic stripe, which can be trivially copied and re-encoded onto virtually anything else with a magnetic stripe.

This is not a new technology but it is a new implementation. Credit card companies and banks have also started active monitoring of all accounts to catch fraudulent transactions sooner. In some cases, they are able to catch the transaction before they are complete or even deny them on the spot. They have also implemented advance security measurements like tokenization and 3D secure. “Tokenization replaces sensitive data with a randomly generated string of characters, so it reduces the risk associated with data breach”. 3D secure “is an additional security layer that helps with fraud prevention in debit and credit card transactions”

This paper identifies the case study of the UK National Identity Card which was introduced in 2002 to help law enforcement, private, and public sectors in a fight against identity theft and terrorism. Criminals have used identity theft has been used to commit other crimes that have also become a problem which has led to terrorism attacks. The numerous crimes that have risen from identity theft are tax evasion, overpaid taxes, passport fraud, credit card fraud, and imposters performing terrorist attacks. The increase of identity theft has led investigators to the Internet were 80% of identity theft is being performed online. A new solution has begun to update the identity card with the EMV (EuroPay, MasterCard, Visa) Chip to store the individual’s information since the EMV chip on credit cards has done some success in shrinking the amount on fraud that have occurred.

ATM machines with exorbitant fees have been thought to be acting as highway robbers, now they may even have a thieving companion; Card scanners. By stealing the information off the credit card as it is swiped the consumer is not even aware they have been attacked. Even if the consumer is careful to hide their hand as they enter the PIN in order to withdraw money from an ATM, the larcenist might still have a hidden camera or card reader to steal the card information. Erin Lowry, a content director for a popular magazine was a victim of two different attacks on her credit identity; she had $600 stolen from her account after using a shady ATM with a hidden scanner inside. The use of a low security ATM is a consumer error, but with everyday stresses sometimes common sense is abandoned in place of convenience. Larcenists will place these scanners inside ATM’s located in low socioeconomic areas with the intent to instantly copy the card numbers onto an embedded micro storage

This article is about physical security failure on securing electronic data. The burglary of credit card data has turned into a typical issue today. Indeed, even after the lessons gained from the Target information breach, Home Depot's Point of Sale frameworks were traded off by similar strategies. The utilization of stolen information and RAM scraping malware were instrumental in the achievement of the two information breaks. Home Depot has found a way to recover from its information rupture, one of them being to empower the utilization of EMV Chip-and-PIN payment cards. Is the utilization of EMV installment cards fundamental? If P2P (Point-to-Point) encryption is utilized, the main strategy accessible to take installment

The first threat is Social Engineering. The Payment Card Industry is a prime target for Social Engineers because they can gain larger profits off of the information. With this information a theft can steal larger amounts of money in a short period.

Electronic cash is a term becoming more acceptable as the world makes a shift towards a cashless society. Since the 1960’s governments and financial institutions have made steady but slow steps towards the goal of a society without cash. The cashless society is being sold as a more convenient method of payment, and a method of preventing crimes all the way from the robbery of cash from an individual to the extent of money laundering among crime syndicates.

With the implementation and adaptation of EMV card payment transaction protocol in October 2015, liability rests firmly on the shoulders of the responsible party in the transaction change with the

Merchant-based vu1nerabi1ities may appear a1most anywhere in the card-processing ecosystem inc1uding point-of-sa1e devices; mobi1e devices, persona1 computers or servers; wire1ess hotspots; web shopping app1ications; paper-based storage systems; the transmission of cardho1der data to service providers, and in remote access connections. Vu1nerabi1ities may a1so extend to systems operated by service providers and acquirers, which are the financia1 institutions that initiate and maintain the re1ationships with merchants that accept payment

There are likewise chances related with a smartcard passage accumulation framework. The essential dangers incorporate those related with saving and securing budgetary and client information. Smartcard frameworks process, gather and store extremely touchy information, for example, approving and handling credit/charge deals, gathering passage installment exchanges and putting away client individual data. There are many dangers intrinsic with overseeing charge installment preparing and related information frameworks including dangers of both inside and outside robbery, the wrongful and unlawful utilization of this information and the risk and advertising worries of not sufficiently sheltered guarding the arrival of client data.

For EMV, the readers access data stored on the chips in the cards to verify cardholders are entering the correct PINs. Contactless cards, the chips transfer the card account number to the reader using wireless technology. Mohammad Khan, founder and president of Vivo tech Inc., a provider of contactless payment terminals and software, says as more countries switch to EMV, criminals will shift their energy to the United States, where the mag-strip infrastructure is easier to circumvent. "The U.S. as a country is open to attack. The fraud people always move toward the weakest point," Khan says. "Every other country in the world has a deadline to move to EMV. I believe the industry needs a deadline in the U.S. as well." CardLine; 2/6/2009, Vol. 9 Issue 6, p12-12, 1p

Smart cards and other forms of electronic cash present a huge advancement in technology, however the success of these two advancements