[HN Gopher] Plastic Money
       ___________________________________________________________________
        
       Plastic Money
        
       Author : bertman
       Score  : 227 points
       Date   : 2023-09-04 07:54 UTC (15 hours ago)
        
 (HTM) web link (computer.rip)
 (TXT) w3m dump (computer.rip)
        
       | jasmer wrote:
       | [dead]
        
       | xyst wrote:
       | just a small reminder of how convoluted the process of buyer and
       | merchant payments has become.
       | 
       | It used to be simple:
       | 
       | - buyer hands the money to the merchant.
       | 
       | - merchant verifies monetary value. If monetary value is valid
       | then merchant gives buyer the item. Otherwise, tells them to piss
       | off/get bent.
       | 
       | - buyer walks away with item
       | 
       | But major credit/debit card processors (visa, mc, amex) had to
       | insert their hands into the pockets of every buyer and merchant
       | to get their 3-5% cut on each transaction.
       | 
       | Now it's a much more complicated process that happens more
       | "seamlessly":
       | 
       | - buyer presents debit or credit card
       | 
       | - merchant checks if debit or credit card is accepted by their
       | payment processor --> if not accepted, tell buyer present diff
       | card or "get bent"
       | 
       | - merchant swipes/taps/keys-in card information and attempts to
       | process the transaction. A decision is typically reached within
       | less than <1 second --> if declined, try again. If further
       | declined, tell buyer card declined. Buyer insists it's good and
       | to run it again. Merchant runs it again, it's successfully
       | processed (wtf?). If not, tell buyer to get bent.
       | 
       | - buyer walks away with the item
       | 
       | In the background, in order to accept debit and credit cards the
       | merchant had to sign a deal with the devil and pick one of the
       | many payment processors. Merchant could have gone with his bank's
       | processor but turns out the merchant doesn't have the right
       | paperwork or lacks the revenue to qualify for a "premium"
       | account. So the merchant looks elsewhere and finds a promising
       | payment processor elsewhere but fails to read the fine print. In
       | addition to the 3-5% fee charged by the major CC networks, the
       | processor will take a 5 cent transaction fee to process, in
       | addition to a 1 cent "inter network" processing fee. ALSO, the
       | "free" equipment that's provided to your business has a $50 month
       | maintenance fee in perpetuity. On the flip side, if you transact
       | 100K per month, they will cut the transaction fees by 25%, oh how
       | generous!
       | 
       | Oh did I forget to mention that some cards have "premium" fees?
       | So if a buyer presents a "black card", the merchant is then
       | charged by the bank issuing the card another fee. Sometimes it's
       | included in the payment processing terms but this is YMMV. So as
       | a consumer, if you ever wonder why the small business takes
       | "visa" but not your "chase ultra sapphire pearl max black" card
       | with visa logo. That's why.
       | 
       | Unfortunately, it doesn't end there.
       | 
       | (2 days later) buyer that bought that item actually stole/cloned
       | the credit card and the actual credit card owner initiated a
       | dispute.
       | 
       | Merchant has now been charged a $25 dispute fee and is now in the
       | resolution process. If bank and/or credit card processor rules in
       | consumers favor, merchant loses $25 in addition to the cost of
       | the item(s).
       | 
       | At the end of the day, merchants get fucked. Merchants pass on
       | costs to consumers/buyers. Buyers get fucked with increased cost
       | of goods.
       | 
       | Only winners are the useless middlemen.
        
         | andrewaylett wrote:
         | Card-present fraud is low enough that _I_ can accept payments
         | (in the UK) for 1.69%. The reader cost PS39, but in the last
         | few months they 've started allowing me to accept NFC payments
         | using my phone without a separate reader. No monthly fees.
         | 
         | I'm not running "classic" retail, just stalls at school events.
         | The cost of cash is the cost of my time and that of other
         | volunteers making sure we know how much cash we brought in, and
         | getting to the bank. It's _absolutely_ worth 1.69% to avoid
         | having to deal with cash. And that 's even before worrying
         | about having a float to make change with.
        
         | folbec wrote:
         | "- merchant checks if debit or credit card is accepted by their
         | payment processor --> if not accepted, tell buyer present diff
         | card or "get bent""
         | 
         | This is america, in France (and more generally in Europe) all
         | credit / payments cards are standardized thru governmental
         | intervention. Vendors are allowed to say cash only and refuse
         | cards in general but this is getting real rare. In some
         | countries (Norway), you can have a real hard time paying cash
         | in big cities, vendors refuse it.
        
       | karmakaze wrote:
       | My first encounter was with VendaCard being used in mid-80s at
       | the University libraries for photocopies. Seems they've also been
       | used for autolaundrymats.
        
       | nottorp wrote:
       | Hmm with cards like these, if they aren't tied to an identity,
       | the general population could print money faster than the
       | governments do.
        
       | kalleboo wrote:
       | Wow this discussion unlocked a long-lost memory: the Swedish
       | "cash card" - a stored value card where you'd use a terminal to
       | load money off your bank account onto the stored value card and
       | then use it in participating stores. If you lost the card you
       | lost the money. The fees to merchants were too high so it never
       | gained any adoption, it looks like it only was available from
       | 1997-2004. The Wikipedia references a German version, Geldkarte,
       | which apparently had a renaissance when it could double as proof
       | of age for tobacco vending machines...
       | 
       | https://sv.m.wikipedia.org/wiki/Cash_(betalsystem)
       | 
       | I'm also reminded of the magstripe stored value cards used by our
       | public transit agency. These were trivial to rewrite, but since
       | most people who tried this did it to save money on their commute
       | rather than random joyriding, it was easy for the agency to
       | reconcile the usage logs to find out where they went every day
       | and wait for them at their station...
       | 
       | These days I think the main advantage to offline systems is
       | performance. When you have a busy subway station in Tokyo with
       | massive crowds passing through the gates, nothing beats the
       | throughout of offline Felicia Suica cards. Their gates default to
       | open and you walk through while swiping without stopping, the
       | gates only close if there is a failure. Vs EMV-based systems like
       | London where you have to stop and wait for the card reader
        
         | thatfrenchguy wrote:
         | EMV based systems aren't necessarily authentification based /
         | don't always phone home depending on the card issuer.
        
           | dfox wrote:
           | It depends on both issuer, acquirer and the particular
           | merchant. Second step of the EMV transaction (after the
           | terminal verifies that the card was issued by known issuer)
           | involves the card and terminal comparing their authentication
           | and authorization policies, which might very well result in
           | no-op being acceptable to both. The system is not designed to
           | be secure against fraud, but to assign liability for the
           | fraud to particular party in cryptographically verifiable
           | way. So as a merchant (think public transport) you can very
           | well accept cards offline without any kind of CHV step, but
           | the possible fraud is your problem.
        
           | [deleted]
        
         | alexfoo wrote:
         | > Vs EMV-based systems like London where you have to stop and
         | wait for the card reader
         | 
         | Throughput depends on the people being ready.
         | 
         | In London the TfL gates (both train/underground) have a delay
         | on closing, so it's possible for the next person's pass
         | (whatever it is) to be scanned before the gates close. At busy
         | times there are enough people already ready with their passes
         | that the gates don't shut at all between scans and there is
         | steady flow of people passing through. It only fails when
         | someone faffs a bit too long with their pass/phone/watch/etc
         | and you get a temporary stall.
         | 
         | Even approaching a closed gate it's possible, with a bit of
         | practice and an outstretched arm, to walk through without
         | having to break stride.
         | 
         | You do have to be careful of some people intentionally using an
         | invalid card, resulting in the gates closing, and the person
         | behind them letting them through with their subsequent scan
         | whilst being left at the gate themselves (easily solved by then
         | going to see one of the gate operatives and explaining the
         | situation).
         | 
         | The things that aren't quite there yet, in terms of speed, are
         | the QR codes being used for digital rail tickets, they have a
         | separate optical reader (obviously) that doesn't work
         | quickly/easily enough to walk through without breaking stride
         | as you have to faff with a piece of paper or your phone rather
         | than a simple NFC.
        
         | [deleted]
        
         | vincent_s wrote:
         | Germany: Geldkarte (German: "money card") is a stored-value
         | card or electronic cash system used in Germany. It operates as
         | an offline smart card for small payment at things like vending
         | machines and to pay for public transport or parking tickets.
         | The card is pre-paid and funds are loaded onto the card using
         | ATMs or dedicated charging machines. The system will be
         | abandoned from 2024.
         | 
         | https://en.wikipedia.org/wiki/Geldkarte
        
           | zwirbl wrote:
           | The similar Austrian system was called 'Quick' and has been
           | defunct for a few years now. I only ever used it for vending
           | machines, mostly cigarettes
           | https://de.wikipedia.org/wiki/Quick_(Geldkarte)
        
         | PaulRobinson wrote:
         | As others have said, EMV doesn't have to phone home, and
         | London's TfL system often doesn't straight away because they
         | might not even have a connection (my bus this morning
         | definitely didn't). It's also not charging the payment
         | immediately, because the charge is unknown at that point - you
         | might not know until the end of the day or week what the charge
         | is, because travel rates are capped and dependent on the zones
         | you're traveling in.
         | 
         | As to the gates being default closed, well, gates at train/tube
         | stations can accept a range of things being presented to them
         | including smartphone/watch payments, bank card contactless,
         | Oyster card, Oyster season tickets, paper tickets with magnetic
         | stripes, paper/magnetic season tickets, and Freedom passes
         | (technically a special sort of Oyster season ticket, I think).
         | 
         | If you're traveling with a paper/magnetic ticket, you're going
         | to have to insert it into the mag reader and wait for it to
         | spit it out before it opens the gates. Can't be swiped.
         | 
         | That, combined with the fact TfL already have a problem with
         | revenue protection (some people jump gates), albeit not quite
         | as bad as you'll see in most of Paris or Rome, means they're
         | going to keep the gates closed by default.
         | 
         | Fare dodging in Tokyo is almost unthinkable. Social constructs
         | mean they can do something at those gates few other cities of
         | that size can get away with.
        
           | kalleboo wrote:
           | Interesting. So there's no verification of the card validity
           | at all? I assumed at least they took an auth hold like gas
           | stations do. If I call and get my card blocked I can use that
           | now-invalid card and ride for free?
           | 
           | So why then are the EMV card readers so damn slow? Is it just
           | a NFC vs FeliCa thing?
           | 
           | The Tokyo metro system also supports paper (mag stripe)
           | tickets through the same fare gates. Those are also spit
           | through the gate super fast.
           | 
           | On a failed read, the gates close nearly-instantly, I don't
           | think they would actually aid in fare avoidance, you do see
           | people run into them painfully when their card has too low
           | balance.
        
             | noodlesUK wrote:
             | From personal experience, if you use an EMV card that has
             | been blocked on TfL services, you will sometimes be able to
             | travel. I did this by accident once. I could see TfL
             | repeatedly trying to debit my account with incorrect
             | information for about a week. I doubt all of their readers
             | are offline, and I suspect that a card gets blacklisted if
             | it declines. I suspect this is also because they only
             | charge at the end of the day once they have computed the
             | correct fare (with capping etc)
        
               | kalleboo wrote:
               | Interesting anecdote! Thanks. I would have definitely
               | assumed that at least train gates (but not buses I guess)
               | would attempt a hold!
        
             | PaulRobinson wrote:
             | > On a failed read, the gates close nearly-instantly, I
             | don't think they would actually aid in fare avoidance, you
             | do see people run into them painfully when their card has
             | too low balance.
             | 
             | I'm talking about the instance where somebody doesn't even
             | scan: they just walk through. That is possible in some
             | stations in London, and it's perhaps not a coincidence
             | that's where the worst fare avoidance occurs.
        
               | nayuki wrote:
               | No, the Japanese fare gates have motion detectors. If you
               | try to walk through without scanning, the gates close. I
               | tested this once.
        
         | justincormack wrote:
         | London does not charge online, especially as they don't know
         | the fare until later, so the billing still happens as batch
         | like Oyster.
        
         | progre wrote:
         | The wonderfull Cash-chip was embedded into Visa debit card
         | issued by the bank. It also had "Valid in Sweden only" printed
         | beside it, on an othervise internationally recognized debit-
         | card.
         | 
         | I know of at least one person who had to spend the night in a
         | detainment cell at JFK and then had to take a plane back to
         | Sweden the next morning because the customs agent concluded
         | that they didn't have any money for their stay in New York.
        
           | kalleboo wrote:
           | Oh god that sounds like an unfortunate design haha
        
       | rtpg wrote:
       | I had this for laundry at school in France! I recently was at a
       | US university, and having to use an app and sign up to start my
       | laundry was something awful in comparison (though I liked getting
       | $5 in free credit for some unknown reason)
        
       | dna_polymerase wrote:
       | PSA: The author of this post also runs a niche YouTube channel
       | that is notoriously under-subscribed. For everyone interested in
       | retro tech & technical infrastructure in the real world, go head
       | over here: https://www.youtube.com/@computersarebad
        
         | jcrawfordor wrote:
         | "notoriously under-subscribed" is a generous way to put it. I'm
         | going to post a cool video soon though, I swear.
        
       | xn wrote:
       | The cafeteria at Visa in San Mateo used smart cards in 1998.
       | 
       | There were startups focused on smart cards in the 90s:
       | https://www.nytimes.com/2000/03/24/business/publicard-busine...
        
       | deadeye wrote:
       | Am I the only one here that remembers credit cards before they
       | used any sort of online processing?
       | 
       | Back in the day, paying with a credit card was a hassle. There
       | was a machine that would take an imprint of your card and you
       | would sign the imprint. There was no authorization.
        
         | dghughes wrote:
         | The authorization was the clerk picked up the phone and dialed
         | the credit card company.
        
         | adamauckland wrote:
         | I remember doing the authorisation by phoning up a Streamline
         | who would give you an authorisation code to put on the credit
         | card form. I worked for Electronics Boutique and we couldn't
         | give the games out without the code
        
         | fellowmartian wrote:
         | I only know this because of the scene from Home Alone 2.
        
         | EvanAnderson wrote:
         | I worked in a gas station taking credit cards w/ an imprint
         | machine. We had a book, updated monthly, of card numbers to
         | decline. That was in 1990. By 1994 we were calling a toll free
         | number and reading (part of?) the account number for
         | authorization.
        
         | lowercased wrote:
         | I worked a retail mall job in the early 90s. We had a
         | computer/POS system that had a built-in swiper for credit
         | cards. You'd swipe, hit a key, then listen to it dial out,
         | connect, beep, etc. A CC payment took minimum 30 seconds,
         | usually closer to a minute. December was always a huge slowdown
         | for cc payments. _Occasionally_ we 'd pull out the imprint
         | machine and do a few of those, and... for some reason, I seem
         | to remember we had to use it for amex or diners club or
         | discover or some other 'non-traditional' card, but those were a
         | rarity - I think I may have done 2 or 3 of those a year.
         | 
         | Most places seemed to have 'swipe in the terminal' only by late
         | 90s.
        
         | OfSanguineFire wrote:
         | I'm curious to know when exactly that practice ended in Western
         | Europe and North America. As a millennial, the only time I ever
         | encountered it was in 2008 in an outdoor shop in Thamel,
         | Kathmandu's backpacker ghetto. The owners said that they could
         | not accept my Visa Electron card (standard European debit card)
         | because it was not a real credit card, and they showed me the
         | machine they used to take imprints of real credit cards. Of
         | course, this was all gone by my next visit to Nepal a couple of
         | years later.
        
         | elygre wrote:
         | If the amount was big enough, there would be a phone call from
         | the merchant to some call center.
        
         | teh_klev wrote:
         | I'm of that vintage of credit card user that remembers this. I
         | used to keep my counterfoils (I think that's what they were
         | called) to reconcile what was remaining on my available credit.
         | I seem to remember there was a printed list of that some
         | merchants used to look up invalidated cards before electronic
         | terminals replaced mechanical card swipe machines.
        
           | EricE wrote:
           | I remember my parents credit card bill coming in on punched
           | cards - would have been the mid 70's. Ha!
        
         | andreareina wrote:
         | I used to be the one running those cards through the machine!
         | We actually would call someone (credit card processor?) to give
         | them the details and we'd get an auth code back that we wrote
         | down.
        
       | pluijzer wrote:
       | Starting from 1996 we had ChipKnip in the Netherlands. When it
       | came out you could already pay with debitcards in most shops. The
       | added benefit was that it was suited for small purchases and
       | worked in places without a phoneline, like the bus. One problem
       | is that if you break or lose the card your money will be gone. I
       | remeber that when I was a child more then once I broke my card
       | and had to tape it togheter in aome wild fashion in order to use
       | my money.
        
       | miki123211 wrote:
       | I kind of like the solution adopted by the Polish city of Wroclaw
       | (and many others, but Wroclaw is the one I'm personally familiar
       | with.)
       | 
       | Their transit system relies on bog-standard bank-issued Visa /
       | Mastercard payment cards, the kind most Polish people already
       | have in their wallets. When you buy a ticket (usually at a ticket
       | machine at the stop or in the vehicle itself), the machine
       | temporarily remembers some of your card information. If a ticket
       | inspector comes, you just tap your normal credit / debit card to
       | their terminal, which queries the vehicle's systems somehow. It's
       | basically the reverse of a storage-value system, they use a
       | payment card for a kind of identification.
       | 
       | All transactions are performed offline, usually the next day.
       | Tickets are cheap enough that fraud is not a big concern, and
       | there's a system in place to blacklist cards that can't be
       | credited. If you end up on that blacklist, you have to go to
       | their website or office, enter your card number / tap your card
       | and pay the missing amount.
       | 
       | If you're a resident and not a tourist, there's also a system of
       | transit cards I believe.
        
       | nayuki wrote:
       | > SIM cards are just smart cards. [...] SIM cards no longer
       | conform is ISO 7810 in most cases (having migrated to the smaller
       | micro and nano formats), but continue to be compliant with ISO
       | 7816 for electrical and protocol compatibility.
       | 
       | Over the past 20 years, I've used mobile cellular telephones that
       | take mini-SIM, micro-SIM, and nano-SIM. I didn't get to
       | experience the full-size SIM card, but learned about this obscure
       | fact from online photos and museums. Example:
       | https://twitter.com/phone_museum/status/1287310071907713024
       | 
       | > Why is it that SVCs gained so little traction for payments in
       | the US?
       | 
       | Another obscure point is that during the Bitcoin craze of the
       | mid-2010s, the Canadian government tried to pitch MintChip as a
       | competitor. It fizzled out and went nowhere.
       | https://en.wikipedia.org/wiki/MintChip
       | 
       | > Offline systems simplify payment networks in some ways, but
       | also add complexity, which is often apparent in transit systems
       | that combine offline terminals (for example in buses) and online
       | terminals (for example at train platforms). [...] If you add
       | value to a card with a zero (or near zero) value and then try to
       | board a bus, it is likely that you will be rejected: the value-
       | add hasn't been written to the card yet, and the bus terminal
       | hasn't been told about it. The transit operator often sets an
       | expectation of one business day for online value adds to be
       | available if your first trip is an offline terminal If you add
       | value to a card with a zero (or near zero) value and then try to
       | board a bus, it is likely that you will be rejected: the value-
       | add hasn't been written to the card yet, and the bus terminal
       | hasn't been told about it.
       | 
       | This perfectly describes the situation in Toronto/Ontario with
       | PRESTO, adding value, and tapping on buses.
        
       | seszett wrote:
       | Nice and very interesting write-up.
       | 
       | I'd like to comment on this part, about actually writing on
       | cards:
       | 
       | > you can create an account online and associate the card with
       | your account, and then you can add value online. This is
       | convenient, but confronts the offline nature of the system. You
       | add value to the card, but there's no way to write the new value
       | to it.
       | 
       | > The solution, or at least partial solution, to this problem
       | looks something like this: fare payment terminals have to receive
       | a streaming log of value-add operations so that they can apply
       | them next they are presented with the relevant card.
       | 
       | I think that's why new systems often use NFC, since smartphones
       | can do NFC this has the potential (because many NFC transit cards
       | don't allow it yet) to actually charge cards from smartphones. In
       | practice, none of the transit systems I regularly use allow it,
       | and although it's in beta in Paris they only whitelist a handful
       | of specific smartphone models so I can't do it either. But it's a
       | possibility.
       | 
       | It could work the same with ISO 7816 smartcards if people just
       | had card readers at home, but in practice here in Belgium where
       | most people have such card readers (used to authenticate online
       | with one's national ID card, although this is becoming less
       | common now that there's a smartphone app for that), this has
       | never been used for anything else basically.
       | 
       | And for some reason, smartcard companies seem to be totally
       | unable to devise user-friendly interfaces. It's been more than 30
       | years now so you might think they have had the time to think
       | about it, but... no. I wish there was just a web standard for
       | that with a standard browser-provided UI.
        
         | dolmen wrote:
         | Charging the Paris transit card (Ile-de-France Mobilites) via
         | NFC is out of beta for at least one year now. Much convenient
         | to bypass queues at the start of each month.
        
         | dolmen wrote:
         | > And for some reason, smartcard companies seem to be totally
         | unable to devise user-friendly interfaces. It's been more than
         | 30 years now so you might think they have had the time to think
         | about it, but... no. I wish there was just a web standard for
         | that with a standard browser-provided UI.
         | 
         | Browser development is driven from the US. Smartcards
         | development is driven from Europe. I expect that the same
         | frictions that happens in deployment of smartcards for banking
         | also happens in the browsers world.
        
         | 1023bytes wrote:
         | I've just used this in Malaysia, they have a card called Touch
         | n Go that is very widely accepted. You can load up the card
         | using cash terminals or via a smartphone app with NFC, you can
         | use that to check the balance as well
        
       | tuetuopay wrote:
       | My grandfather was at the head of a French company that pioneered
       | the smart card for banking use. They started with the payphone,
       | continued with the Vitale card (public health system card), then
       | did the credit card. He told me stories of him going in many
       | countries to sell the tech and concept, and this article nails
       | it: this is a French thing, so the US did _not_ want it. They did
       | not want it so badly that magstripe is still commonplace. Its
       | quite nice to listen to him about the beginnings of computing,
       | the notion of  "datacenter", etc.
        
         | Chris2048 wrote:
         | > this is a French thing, so the US did not want it
         | 
         | Given how common US things are in Europe, I'm surprised there
         | isn't more of a trading war over things like this. Personally,
         | I think the EU should penalise foreign all social media
         | companies, and fund local start-ups to replaces them.
        
           | oaiey wrote:
           | The US is a huge market within, has very revenue focused
           | companies and an active "Homeland security"/national interest
           | management ongoing.
           | 
           | I totally believe that the first two points reject 90% of
           | international influence and standardization.
        
             | jcrawfordor wrote:
             | Well, one of the reasons I kind of play up the French
             | origin of this technology is because I think it turns into
             | an interesting twist when it comes to US government
             | adoption. Articles from the time period seem to agree that
             | the technology was having a really hard time crossing the
             | ocean from Europe, and while there were several factors I
             | think a good chunk of it was just the payment networks in
             | the US not being interested in adopting something new.
             | 
             | But there's a bit of irony where, post 9/11, the US federal
             | government decided they needed to really pick things up
             | when it came to secure identity for federal employees and
             | military personnel. So they developed and adopted the PIV
             | standard now used for all federal credentials, which is a
             | very soup-to-nuts smart-card based identity solution
             | complete with PKI certificates and offline biometric
             | authentication. The problem is that smart card technology,
             | clearly the way to achieve this, hadn't taken off in the
             | US, so they ended up having to buy pretty much the whole
             | solution from France. Not that big of a deal in practice as
             | Thales is a major defense contractor to the US anyway, but
             | sort of a disappointment considering all the interest in
             | keeping a strong domestic military technology capability.
             | 
             | One wonders where the NSA was during this process, but the
             | NSA has a tendency to both overengineer things to a degree
             | that widespread use is infeasible, and keep things secret
             | to a degree that widespread use is undesirable. So the more
             | homegrown solutions to similar problems, things like the
             | Fortezza cards, were complete nonstarters as a widespread
             | solution to identifying federal personnel. So we have one
             | of the factors here in the United States general lag in
             | adoption of identity technology compared to other,
             | especially European, countries.
        
             | Chris2048 wrote:
             | I'm not sure I understand what the first two points are.
             | 
             | That US corporations are so focused on revenue / a large
             | market that they are not influenced by government?
             | 
             | Or that the US market is so big international corps cannot
             | complete (which is irrelevant in the context of my own
             | comment).
        
               | EricE wrote:
               | Simpler than that - look up the phenomenon known as Not
               | Invented Here
        
       | sugarkjube wrote:
       | I doubt offline cash-like electronic money will ever happen.
       | 
       | Like others also already mentioned, we also had a system like
       | this 30 years ago for vending machines and cafeteria in a large
       | corp.
       | 
       | Banks want tracking (for customer profiling). Governments wants
       | tracking (for anti-terrorism and anti-money-laundering). So it
       | won't happen.
        
         | kwhitefoot wrote:
         | It happened in 1995 with Mondex,
         | https://en.wikipedia.org/wiki/Mondex
         | 
         | But I suspect that your reasoning is correct nonetheless.
        
         | jmclnx wrote:
         | I believe this is the case too, at least for the US. Why, no
         | profit to be made from people using these. We have Credit Cards
         | and the Banks get a cut from the store and from people who do
         | not pay their full balances off, and the stores hide these fees
         | from their customers.
         | 
         | Now some stores are starting to add special fees for Credit
         | Card use, which the Banks are trying to eliminate these fees
         | via the US Congress. They know as well as I do, if stores start
         | charging fees for Credit Card use, many people would jump right
         | back to cash. This would decrease their profits.
        
         | esprehn wrote:
         | Consumers also want protection against lost cards, fraud and
         | refunds when the merchant or product is bad.
        
         | mindslight wrote:
         | The general trend that I see is that institutions [0] will
         | always favor centralization of telemetry and control (eg the
         | concept of _legibility_ ). You don't even need to phrase it in
         | the terms of profiling/tracking per se, although those are
         | instances of the general.
         | 
         | I think I even feel the same dynamic with something as banal
         | and informal as home automation. With some kind of computer (eg
         | microcontroller) at every node I certainly could keep the local
         | control local. Or I could just focus on publishing data to the
         | "network" [1] and getting commands back, and making the
         | interface a given device exports as simple as possible.
         | 
         | We see the results of this harsh dynamic for platforms that
         | allow for hub-less control (eg Zwave I think). Nifty and more
         | robust, but it adds to the bespokeness and siloing/lock-in.
         | It's just so much more complexity that then has to be
         | configured, and then grokked to know what the system will
         | actually do. Whereas backhaul state and control to a general
         | purpose Linux machine running python and you can do "whatever
         | you want" (modulo that singular machine having a problem).
         | 
         | Not a great dynamic for those of us that like freedom.
         | 
         | [0] or really any entity, corporations and governments can just
         | fulfill the imperative at scale
         | 
         | [1] full extrapolation in the corporate context - "cloud"
        
         | paulgerhardt wrote:
         | https://offline.cash/
         | 
         | I mean. It's already happened. Thanks to some clever non-
         | intuitive use of escrow contracts one can create fungible cash-
         | like electronic money for offline transactions.
        
       | medler wrote:
       | NYC metro cards are reportedly a form of stored-value card. When
       | you swipe, it reads the value, writes the new value, and checks
       | that the correct value was written. Transactions are later synced
       | to a database to catch fraud and so forth.
       | https://www.reddit.com/r/AskNYC/comments/nsicuj/technologica...
        
       | ElongatedMusket wrote:
       | Talking up the tech of having physical plastic cards hold value,
       | but ignoring the real-world implications, is kind of silly right?
       | Maybe it would have been better for the author to get that out of
       | the way first... something like "if plastic cards held a value,
       | public figures such as celebrities and CEOs would be robbed,
       | kidnapped, held ransom, etc due to the values of the cards, so
       | they are not practically safe in our non-utopian world. But let's
       | explore the tech behind it anyway"
        
         | lxgr wrote:
         | You're missing an important point: It's possible to carry
         | _some_ of your money with you, and leave most of it somewhere
         | more safe, in whatever form, just like with cash.
        
           | jaclaz wrote:
           | And another important point, public figures tend to have
           | assistants with them that carry the money or the cards or
           | just pay later.
        
         | kwhitefoot wrote:
         | That's just about the silliest idea I have read this month.
        
         | pjc50 wrote:
         | The cards are kind of a cash-substitute.
        
       | benoliver999 wrote:
       | This guy writes faster than I can read. I love the site!
        
       | virtualritz wrote:
       | I remember getting my first debit card from my local bank in
       | Germany as a teenager. It was in the early 90s, I believe.
       | 
       | It had a chip with the ubiquitous brass contacts almost any card
       | has today.
       | 
       | My uncle had participated in the patent filings for some of the
       | tech, years earlier, for his employer. He had explained to me,
       | already in the 80s, how this would be the future of carrying
       | money around.
       | 
       | It never took off. My personal take is that it was simply an
       | oversight in UX.
       | 
       | There was no way to check the balance on the chip without going
       | to an ATM.
       | 
       | Furthermore only some ATMs of some banks carried the
       | hardware/software to do so. I also don't recall if you could even
       | check your balance if the ATM belonged to another bank.
       | 
       | Also paying by card was far from common in Germany then so few
       | shops carried the readers. It was mostly only big supermarkets
       | and department stores.
       | 
       | I.e. it was double inconvenient compared to cash.
       | 
       | And Germany being a safe country, the added security in case of
       | theft didn't help. It was also a minor factor since a thieve that
       | would steel your purse would simply throw the card away. The
       | money would be gone either way.
        
       | jimmcslim wrote:
       | Oh wow, a lot of technology in there from my past... in the late
       | 90's I worked at a startup, Cards Etc, in Sydney, Australia with
       | the mission to build a back-end system, Arterium, for dealing
       | with multi-application smart card issuance.
       | 
       | The product is still mentioned in a couple of articles...
       | 
       | https://www.afr.com/companies/smartcards-offer-a-world-of-op...
       | https://www.finextra.com/newsarticle/3534/first-data-selects...
        
       | robin_reala wrote:
       | I spent a few years with a Mondex card[1] (I assume Exeter
       | university was one of the test locations?) and it was vaguely
       | useful: most places on campus accepted it so you could use it to
       | pay for a pint, print or photocopy, or buy course books. Looking
       | through the list of what it could do though it seems it was
       | pretty underutilized. In the test location I was in you couldn't
       | transfer funds to another person or use multiple currencies, and
       | I don't remember any personal readers.
       | 
       | [1] https://en.wikipedia.org/wiki/Mondex
        
       | vinay_ys wrote:
       | In more recent times, we had to think about this problem in
       | Indian market context. I saw this problem as online vs offline
       | payments problem.
       | 
       | If both parties are offline, can you still make a secure transfer
       | of stored value? Yes, with a trusted execution environment and
       | cryptography, you can do it. So, yeah, smart card works; a
       | smartphone works, a feature phone with NFC smart card works etc.
       | For each, the risk profile is different which affects the answer
       | to the next question.
       | 
       | Then, when does reconciliation happen? When either party goes
       | online? What if it is not a closed loop system? Then,
       | reconciliation needs to happen for both parties independently.
       | How long can either party stay offline and continue to make
       | transactions? Is it both send and receive or only send on one
       | side and only receive on another side? What if one party
       | (merchant/receiver) is more likely to be online (almost always).
       | Does it just become online payments problem then? NFC tap and pay
       | is exactly this scenario.
       | 
       | In India, right now, we have NETC stored value cards for closed
       | loop systems like metro. For open systems like UPI we have
       | recently introduced offline payments capability with very small
       | stored value stored as tokens on the mobile phone and used for
       | very small transactions. As the banks learn the real-world
       | operational risks, the wallet limits and transaction limits will
       | be increased.
        
         | londons_explore wrote:
         | The real solution is to let the receiver of the money have a
         | "verify" button which will, if connected to the internet,
         | contact a central server and check that no double-spends etc.
         | have happened. Up until verification is done, the money shows
         | as "provisional" in your account - but you can still spend it.
         | Only one person in the chain needs to verify for the whole
         | chain to become permanent.
         | 
         | Then the users and merchants can decide if they wait to click
         | the verify button. And the default for anyone with data
         | connectivity should probably be auto-verification. There is an
         | incentive to verify, because if any double-spending has
         | happened, the first to verify is the one who gets the money.
         | 
         | Double-spends _will_ happen in any system that allows offline
         | transactions, because a user has to be allowed to log into a
         | new device (if they lose their old one), and there is no way to
         | know if the money spent from their old device was synced to the
         | server yet.
        
           | lxgr wrote:
           | > Up until verification is done, the money shows as
           | "provisional" in your account - but you can still spend it.
           | 
           | Who would accept "provisional money" though, if there is a
           | realistic risk of it being double spent and therefore
           | effectively worthless?
           | 
           | > Double-spends will happen in any system that allows offline
           | transactions
           | 
           | Only if you assume untrusted devices. That's why in most past
           | and existing stored-value systems, smartcards are being used
           | - these have different security properties.
        
             | londons_explore wrote:
             | > Who would accept "provisional money" though, if there is
             | a realistic risk of it being double spent and therefore
             | effectively worthless?
             | 
             | It's up to the receiver whether they want to walk to the
             | internet cafe and connect to verify it, or if they just
             | trust the person they got it from.
        
             | londons_explore wrote:
             | > Only if you assume untrusted devices.
             | 
             | If all the devices are trusted, but can be lost/destroyed
             | and re-issued, you have the same problem.
        
               | lxgr wrote:
               | There are ways to do reissuance for lost or damaged
               | stored-value cards, but they require shadow accounts and
               | periodic reconciliation:
               | https://news.ycombinator.com/item?id=37380539
               | 
               | But these aren't mandatory: Physical cash also can't be
               | replaced when lost, and only rarely when physically
               | destroyed. That model might be preferred in some
               | scenarios.
        
           | woah wrote:
           | I get the idea, but I think this is a terrible UX. People
           | shouldn't have to worry about whether they have real money or
           | not. Either the system is secure or it isn't.
        
             | Spivak wrote:
             | Eh, checks and chargebacks are a thing. People are already
             | used to the idea that money has to clear to be real.
        
               | lmm wrote:
               | Not nowadays. Most people never deal with cheques and
               | never accept payment by credit card.
        
           | vinay_ys wrote:
           | > because a user has to be allowed to log into a new device
           | (if they lose their old one)
           | 
           | You can solve for that by having short validity of the
           | offline tokens on device and having that equal the cool-off
           | period for reclaiming those funds when new device is
           | provisioned. If I had [?]100 unspent tokens in my offline
           | capable device that I lost, and got a new device provisioned
           | the same day, then that [?]100 will show up in my account and
           | be available to load on my device only after, say 7 days, of
           | cooling-off period. In those 7 days, if someone who found
           | your device could spend it and if so you lose it. If you know
           | you are likely to be offline only sporadically for few hours
           | and not for days, you can reduce the validity (and hence
           | cooling-off period) significantly to just 12 or 24 hours.
        
             | londons_explore wrote:
             | I think this system has to be designed for some users who
             | will _never_ be online. Think of villages where there is no
             | internet access yet (only 8% of Eritrea has access to the
             | internet for example!). Hence there can 't be a 'if you
             | don't log in for 7 days you lose your money' mode.
        
               | vinay_ys wrote:
               | Let me clarify: if you have you device with you (didn't
               | lose the device) and you didn't make contact with another
               | online device for more than cool-off period, your device
               | tokens won't be refreshed and they will expire and become
               | unspendable. You don't lose that money - it is still in
               | your account and will be available for you spend as soon
               | as you go online. The "lose your money" scenario is only
               | if you lose your device and someone finds your device and
               | spends the money on the device within the cool-off
               | period. It is equivalent to losing your cash wallet and
               | someone else spending your cash. Except in case of cash,
               | that stolen/found cash is lost forever and is valid to be
               | spent by the thief/finder forever whereas in this case
               | there is a small time-window after which you
               | automatically don't actually lose your money!
        
         | endgame wrote:
         | If both parties are offline, exchanging cash trivially solves
         | this problem.
        
           | vinay_ys wrote:
           | :-) that assumes cash is trivial. It is not for so many
           | reasons. Cash is bulky and discrete. Cash is visible and
           | easily snatched/coerced from you.
           | 
           | Apart from classical robbery held at knifepoint or gunpoint
           | and taken to an atm and being robbed or being blackmailed to
           | actually do instant money transfer online which do happen,
           | there are other lower threshold but more frequently occurring
           | and more painful cash "thefts".
           | 
           | One eye-opening story I learnt a while ago was this: the
           | women daily wage workers (or the household help that comes to
           | my home) who are typically the breadwinners for the family
           | are coerced by their drunk husbands to give their hard earned
           | cash which they will waste on more alcohol or gambling. This
           | was the situation for decades. Now, with zero-balance, zero-
           | cost bank accounts being made available at scale in India,
           | these women can now keep their money safe and provide care
           | for their children by refusing to give money to their
           | husbands (usually it involves telling them they don't have
           | the money to give when in fact they do in their banks). Such
           | is the social reality for so many.
        
             | eldaisfish wrote:
             | cash also has a fantastic advantage that no piece of
             | technology will ever have - its ability to level the
             | playing field in terms of access. No government can
             | invalidate your cash without simultaneously invalidating
             | all cash. This is not the case with any digital system.
             | 
             | See here for one example where the indian state denied
             | citizens access to their money by freezing their UPI
             | accounts after unproven allegations.
             | https://www.thenewsminute.com/article/bank-acs-can-be-
             | frozen...
        
             | jameson71 wrote:
             | That doesn't sound a lot different than "hiding" the cash.
             | If she is working, the husband knows she is getting money.
             | 
             | I do not think the loss of privacy is worth the convenience
             | when talking about replacing cash in a society.
        
               | lxgr wrote:
               | I fully agree, but in fact stored-value cards offer a
               | plausible path forward for private electronic money:
               | 
               | Most existing stored-value systems use "shadow accounts"
               | for reconciliation (in case one of the card-level private
               | keys gets compromised and makes it possible to "double-
               | spend" electronic cash), but that's not really a required
               | part of the system. If it's secure enough, it's possible
               | to just leave these out!
               | 
               | It's probably also possible to create some kind of hybrid
               | system which does create pseudonymous traceable logs
               | which offer some trade-off between privacy and security,
               | similar to how banknotes have serial numbers which can
               | theoretically be traced, but practically mostly aren't.
               | 
               | And the enormous advantage of a privacy-preserving
               | e-cash/stored-value system over cash is that it works on
               | the internet too.
        
             | wtmt wrote:
             | The story and the connection to bank accounts don't sound
             | logical at all. It's not like the husbands wouldn't know
             | that the money _is there somewhere_. If a random person can
             | do to another person a  "classical robbery held at
             | knifepoint or gunpoint and taken to an atm and being robbed
             | or being blackmailed to actually do instant money transfer
             | online", why wouldn't husbands catch on to this? The women
             | could, in theory, have more than one bank account and hide
             | how much they earn and save by keeping a lower balance in
             | the account known to the husband. But the same could also
             | be done with physical cash by handing a chunk of it to a
             | trusted person (for expenses and savings) and keeping a
             | smaller amount at home to be snatched.
             | 
             | With one or more bank accounts, the woman must now keep her
             | phone safe and inaccessible from the husband too. Or she
             | must be very quick and diligent in deleting all the SMSes
             | sent by banks for all kinds of transactions. This adds more
             | hassles than saving cash with someone else.
             | 
             | In all the cases of alcoholism and men snatching money from
             | the women/household without any other care, it's violence
             | that keeps that relationship and "contract" alive. That
             | violence isn't going to disappear just because physical
             | cash is replaced by a bank account.
             | 
             | In summary, I don't buy the conclusion you've quickly
             | jumped to.
        
             | MichaelZuo wrote:
             | I don't quite get the example, like the other user said in
             | this case the husband would clearly understand his wife is
             | still working, so of course he won't believe it? So if he
             | has a alcohol and gambling problem then he will still try
             | some method?
        
         | bertman wrote:
         | >For open systems like UPI we have recently introduced offline
         | payments capability with very small stored value stored as
         | tokens on the mobile phone and used for very small
         | transactions.
         | 
         | Sounds interesting! I read about India's UPI for the first time
         | a couple of months ago in an Economist article:
         | https://archive.ph/WoqQp
        
         | predictabl3 wrote:
         | Please don't scorch me HN, this isn't an endorsement, just a
         | question for thought -- but isn't this one of the things
         | Lightning is sort of meant to solve?
         | 
         | lol, literally less than 20 seconds.
         | 
         | > Then, when does reconciliation happen? When either party goes
         | online? What if it is not a closed loop system? Then,
         | reconciliation needs to happen for both parties independently.
         | How long can either party stay offline and continue to make
         | transactions? Is it both send and receive or only send on one
         | side and only receive on another side? What if one party
         | (merchant/receiver) is more likely to be online (almost
         | always). Does it just become online payments problem then? NFC
         | tap and pay is exactly this scenario.
         | 
         | Again, literally the exact problem statement and value
         | proposition of Lightning, but _stupid, stupid_ me for daring to
         | mention it here, I guess. Feel free to ignore that the idea
         | behind Lightning could be useful without being tied to crypto,
         | but can 't possibly have a conversation about that. Nope.
        
           | callalex wrote:
           | >but can't possibly have a conversation about that. Nope.
           | 
           | What conversation? You just dropped in here with flamewar
           | bait and complaining about some self-imagined persecution
           | without contributing any substance. Hence your comment is now
           | gray.
        
           | intotheabyss wrote:
           | No, not lightning. If anything, it would be something like
           | this: https://blog.gridplus.io/the-phonon-
           | network-59835328b799
        
         | lxgr wrote:
         | > Then, when does reconciliation happen? When either party goes
         | online?
         | 
         | In many existing systems, there's a split between "merchant"
         | and "customer" cards, of which only merchant cards are allowed
         | to accept payments. Merchants often have to go online once per
         | day and batch-submit all of the day's payments in order to be
         | guaranteed settlement.
         | 
         | Among other advantages, this allows for a "lost/stolen" card
         | feature: If a user loses a card, that card can be denylisted on
         | a global list synchronized to all merchant terminals daily.
         | After another day of waiting for straggler transactions, it's
         | possible to determine the remaining balance of the lost card
         | from the backend, and reimburse its owner, since further funds
         | on the card can no longer be spent anywhere in the system.
         | 
         | One day is essentially just an arbitrary timespan here - you
         | could make it 14 days, or an hour. In the systems I've looked
         | at closely, one day makes sense because these are historically
         | transit-focused, and e.g. buses don't have continuous network
         | connectivity, but do go to a depot in the evening, which is a
         | good opportunity to clear and settle all of the day's payments.
         | 
         | Customer cards never need to be online in such a scheme.
        
         | kwhitefoot wrote:
         | > Then, when does reconciliation happen? When either party goes
         | online? What if it is not a closed loop system? Then,
         | reconciliation needs to happen for both parties independently.
         | How long can either
         | 
         | You can solve that by actually having the money in the device
         | so that reconciliation is not required, digital cash like the
         | abandoned Mondex stored value system.
        
       | lisper wrote:
       | The important point here IMHO is that the vast majority of fraud
       | is not an inevitable cost of doing business, it's the result of
       | _deliberate policy decisions_ , and the fact that the cost of
       | fraud can be fobbed off by financial institutions onto merchants
       | and thence onto consumers without the latter even being aware
       | that they are bearing this cost. It is quite literally a
       | conspiracy.
        
         | [deleted]
        
       | grishka wrote:
       | Had to read surprisingly far before there was a mention of
       | transit cards -- which is the first thing that comes to mind when
       | I think about stored-value cards.
       | 
       | In my city's implementation the offline-ness of the system is
       | very apparent. If you add value to your card online, you have to
       | come to a subway station to stick the card into a reader to have
       | your new balance written. The turnstiles at the same station
       | don't do that either despite definitely having a network
       | connection, you have to specifically use the balance-checking or
       | ticket-selling machines.
       | 
       | The only application I've seen that isn't transit is at arcades.
       | You'd buy a "member" card that you'd put money into. Each machine
       | would have some sort of terminal where you tap or swipe that card
       | to add credits to the game. But then I'm not quite sure if these
       | systems are offline or these terminals are connected into a
       | network.
        
       | hippich wrote:
       | Sometimes back in 90ties, in Belarus, we had payphones that
       | accepted prepaid payphone cards. I don't remember if you could
       | reload them or you just bought one with credits already on them,
       | but you certainly could change a few bytes on the card's chip
       | memory to set credits about to any value you wanted. And the
       | hardest part was actually finding contact board that matched
       | chip's contacts layout, to wire it up to LPT port. But otherwise
       | it was "plaintext" value you change in the hex editor.
        
         | pjc50 wrote:
         | The UK had non-chip phonecards for a while:
         | http://www.telephonecardcollector.com/phonecard-collecting-h...
         | 
         | I think they were magnetic or magneto-optical?
        
           | rwmj wrote:
           | Yeah they used a laser to read and burn along a strip in the
           | card. (It was a bit more subtle than I've described it, and
           | you couldn't see the burn mark.)
        
       | throwmeaw wrote:
       | One of the first stored-value bank cards was called Proton and
       | trialled in Belgium as early as Feb 1995 [0].
       | 
       | I have fond memories as a young teenager topping up the card at
       | my bank ATM (just transferring money from my current account to
       | the proton bit of my debit card) and buying my weekly & monthly
       | computer magazines at the local newsagent. I'm surprised it
       | survived until late 2014, a nearly 20 year long run.
       | 
       | [0]: https://en.wikipedia.org/wiki/Proton_(debit_card)
        
       | jeffchien wrote:
       | Coincidentally Japan just indefinitely suspended sales of their
       | famous SVCs due to the semiconductor shortage, and BART had
       | issued a similar warning about shortages last year.
        
       | reisse wrote:
       | We had stored value card payment system in Uzbekistan somewhere
       | from 2003-2005 to 2010-2012. But no-one ever called it "stored
       | value card", basically, I learnt the word today :) Everyone just
       | called it "offline cards", in contrast with "online cards" which
       | required Internet to do transactions.
       | 
       | The system was called UzKart (do not confuse with UzCard, which
       | is modern online successor of that system). On the day when
       | salary was paid, you had to find an online ATM or internet-
       | connected terminal in the shop, and "load" money to the card.
       | Then, you could use the money on the card to pay in offline
       | terminals. Balance could be checked directly in offline
       | terminals, you had to ask the seller to print it.
       | 
       | Sellers had a special offline card, called "merchant's card". In
       | the end of the day they loaded all the transactions from an
       | offline terminal to a merchant's card, and then brought the card
       | to an ATM or a connected terminal, to synchronize payments with
       | the bank account.
       | 
       | If, for some reason, at the time of synchronization some payments
       | failed to clear, payer's card was banned and they had an angry
       | call from the bank.
       | 
       | When the system was introduced, internet connection was expensive
       | and unreliable. It co-existed with online cards, but merchants
       | strongly preferred to deal with offline cards. As soon as mobile
       | internet become cheaper and more widespread, offline cards died
       | because of the hassle with "loading" and "unloading" them.
       | 
       | More info on UzKart and UzCard can be found (in Russian) here
       | https://gazeta.norma.uz/publish/doc/text97703_uzkart_ot_duet...
       | and here https://uzcard.uz/ru/news/post/uzcard-bankovskaya-
       | tranzaktsi...
        
         | ksec wrote:
         | Which is similar to T-Money in South Korea, Octopus in Hong
         | Kong, and later Suica in Japan. All of which if I remember
         | correctly came before 2000.
         | 
         | They are still extremely popular in those region. One of the
         | thing I dont understand is why these type of payment never took
         | off in the West. Even things like Oyster card in the UK is only
         | for transport but not for any other sort of payment.
         | 
         | Another point worth pointing out, Offline payment are much
         | faster, with Sucia based on FeliCa capable of doing the
         | transaction in less than 100ms. This is important in a
         | transport system as heavily used as the Japanese transport. For
         | people who are used to these type of payment, everything else
         | just felt so slow.
         | 
         | With every iPhone now getting a Felica Chip built in, I was
         | hoping this type of payment could take off. And yet nothing
         | happened.
        
           | toast0 wrote:
           | I don't know about Europe, but in the US, offline payments
           | with regular credit cards are/were a thing.
           | 
           | In the old days, you could use an imprint machine to run the
           | card, and mail in the charge slip. Raised numbers and imprint
           | machines are uncool now, but they lasted a long time as
           | backup in case the terminal wasn't working or the power was
           | out.
           | 
           | As far as I know, most US cards include the metadata for
           | offline charges, where the terminal processes transactions in
           | bulk, but there's more risk for merchants than doing an
           | online transaction.
           | 
           | Stored value cards are popular in transportation, where speed
           | is important, fault tolerance is required, and connectivity
           | is intermittent. But even for gift cards, it's more common to
           | use the card as an identity token, and get the value from an
           | online ledger; it makes alternate uses much simpler.
        
             | zdragnar wrote:
             | I'm always extremely leery any time those come out because
             | the network is down. A furniture / appliance store in my
             | hometown had an employee use the imprint machine to steal a
             | bunch of credit card numbers, including my parents' card.
             | They only found out because the police had been tipped off
             | and found a bunch of carbon copy slips in the employee's
             | apartment.
        
           | [deleted]
        
           | lmm wrote:
           | > They are still extremely popular in those region. One of
           | the thing I dont understand is why these type of payment
           | never took off in the West. Even things like Oyster card in
           | the UK is only for transport but not for any other sort of
           | payment.
           | 
           | From my memory, some newsagents etc. did allow payment by
           | Oyster. But there just wasn't demand for it.
           | 
           | In Japan at least, many people don't have credit cards and
           | are scared of any kind of debt (perhaps because debts are
           | more enforceable here). So that might be a factor.
        
           | loyukfai wrote:
           | The Octopus is the de facto transport pass in Hong Kong
           | (well, it's started by the major transport companies) and
           | commonly used in many shops, it's also used by some for
           | building access.
           | 
           | Octopus takes an 1.5% cut, I'm not sure if it applies to the
           | founding transport companies but I assume the money will flow
           | back to them anyway.
           | 
           | Recently, some transport services started incorporating
           | Chinese e-wallets like Alipay and WeChat Pay which utilizes
           | QR codes, and the agony of seeing people (mainly Chinese
           | tourists) repeatedly scan and fail at the gates blocking the
           | whole queue during rush hours is quite depressing after years
           | of smooth access.
           | 
           | Cheers.
        
           | hakfoo wrote:
           | We sort of have two forces pushing in opposite directions:
           | 
           | * Many transport cards were NFC or RFID or otherwise "you
           | don't have to take the card out of your wallet" years before
           | general-purpose cards were. Now, many transit systems just
           | promote "tap-on and off with your Visa and don't bother
           | loading money into our closed-loop network." (Interestingly,
           | I will note that Toronto's system at least is cheaper to ride
           | if you do use the closed-loop card)
           | 
           | * Conversely, merchants-- especially large merchants-- have
           | desperate desire to get away from the general purpose card
           | networks due to high fees and sometimes clunky chargeback
           | rules. Notice the handful of "Walmart Pay"/"Kroger Pay" apps
           | that they'll support rather than enabling Apple or Google Pay
           | at the till, or even things like Target and some petrol
           | stations offering propriatery cards that connect to debit for
           | settlement.
           | 
           | Transport cards could be appealing for the merchant
           | audience-- they're likely cheaper to process and represent
           | funds already confirmed by the transport operator. But
           | they're not federated, so it would turn into a nightmare of a
           | thousand individual integrations and a UX like the early days
           | of (pre-Visa/MC branded) debit where you'd have to check if
           | the merchant supported the specific network your card was on.
        
         | jacobwilliamroy wrote:
         | I'm surprised we don't have something like this in the U.S.
         | Just last week I was withdrawing cash from an ATM because I was
         | worried the power would be out for a few days and my debit card
         | wouldn't work.
        
           | lxgr wrote:
           | Almost-ubiquitous, almost-free network connectivity can be a
           | curse when it comes to the development of resilient systems.
           | 
           | The US has had free local calling for many decades now, so
           | online card authorizations were always much cheaper than in
           | many other countries, even long before the internet.
           | 
           | Still, there were some applications: The article mentions
           | laundromats, but as far as I know, US military ships have
           | also had a similar system.
           | 
           | There's an interesting recent legislation proposal today that
           | argues for a very similar system, but primarily for the sake
           | of privacy (although network/power failure resiliency would
           | be nice secondary benefits): https://ecashact.us/
        
         | mrsalamander wrote:
         | In the early 90s I lived in Guelph, Canada. We were one of a
         | couple of pilot cities for Mondex, a stored value card system
         | that I think was owned by MasterCard. The city got a bunch of
         | funding to get Mondex working everywhere from parking meters to
         | buses, payphones, and of course private businesses. Everyone
         | who wanted one was sent a Mondex card and a portable card
         | reader which looked like a small calculator. You could put your
         | card in it and press your thumb on a button to make the display
         | show your balance. That little device allowed you to transfer
         | money between cards if I recall, but I never figured out how.
         | You could also see your past transactions and set a card PIN.
         | 
         | One of the cooler things Mondex could do was an early form of
         | online banking. Some households were issued special phones from
         | Bell Canada that looked like regular Nortel phones with a
         | yellow card reader attached to the side and a much larger
         | screen. You could log in to your bank directly from the phone
         | and transfer money out of your account into the card. You could
         | also use an ATM if you didn't have the phone.
         | 
         | It was a pretty neat technology but at just around the same
         | time Interac debit payments really started to take off and
         | people were much happier to have a card linked to their
         | accounts rather than a card with a balance you could lose. The
         | payments were also pretty slow, so anyone paying for the bus
         | slowed the line down.
         | 
         | I still have my card and reader somewhere and I think it has a
         | few dollars left on it. The last time I looked, many years ago,
         | the only transactions that showed up on the reader were coffee
         | purchases at Tim Hortons.
        
         | bonestamp2 wrote:
         | In the mid 90's in Canada we had similar cards, but they were
         | only for pay phones. Before cell phones became cheap, parents
         | would buy these pre-loaded cards for their tweens and teens so
         | they could call for a ride when they were done at the mall or
         | whatever.
         | 
         | https://i.imgur.com/aD6ihh8.jpg
        
           | mig39 wrote:
           | Personally, I did the collect call thing to my parents,
           | especially after the system was automated.
           | 
           | Robot Voice: Hello, you have a local collect call from "mig39
           | is ready to be picked up" -- do you accept the charges? Then
           | my parents would just hang up and come get me.
        
             | techsupporter wrote:
             | People of a certain age will remember the GEICO ad,
             | "Collect call from Bob...Wehadababyitsaboy" -
             | https://www.youtube.com/watch?v=9JxhTnWrKYs
        
         | thriftwy wrote:
         | That's interesting. In Russia, cards didn't really catch up for
         | a long time, but once they did, they were online cards with
         | GSM-enabled card terminals.
         | 
         | Until 2010, most people will get their salary on a card, go to
         | ATM, withdraw paper money and pay with that. Actually, cards
         | only became relevant with the advent of contactless/NFC cards,
         | which started around 2012. Then they spread like wildfire.
         | 
         | I wonder what caused the adoption of UzKart compared with plain
         | old cash. I also wonder if any neighbouring countries had
         | similar systems and what their adoption levels were.
        
         | samstave wrote:
         | Reminds me of minutes loading of SIMs in Philippines in the
         | early 2000s... Loading was available every single tiny soda
         | stand to bodega to major shopping - they were Uzbek-quitous :-)
         | 
         | I have some friend who have made millions over the years in
         | selling international calling cards and routing them through
         | their SIP networks...
         | 
         | There is the ability to make a completely separate
         | transactional system outside of of Central Bank Control, using
         | these stacks for card loading and calling (network access)
         | etc... but generally fighting against Money Monopolies is
         | suicide for your business.
         | 
         | And on the one hand, rightfully so - EXCEPT in cases like
         | SBF... that guy is such a criminal, the central banks like him,
         | and his parents, and his donations, and his fraud...
         | 
         | The whole system has holes in every facet.
        
         | jackdaniel wrote:
         | That's super-interesting, thank you for sharing :)
        
       ___________________________________________________________________
       (page generated 2023-09-04 23:00 UTC)