From: Randy Catoe <Randy@mci.net>
Date: Wed, 20 Sep 95 22:38:24 PDT
To: cypherpunks@toad.com
Subject: Re: USA Today on Fear of Credit Cards over Net
Message-ID: <01HVIQUUZ6HU8WX6TO@MAILSRV1.PCY.MCI.NET>
MIME-Version: 1.0
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At 07:35 PM 9/20/95 -0400, Perry E. Metzger wrote:
>
>Re: The risk of credit cards.
>
>I suppose that indeed there are large risks elsewhere in the credit
>card system. However, I think that the credit card system itself is
>stupid and insecure and ought to be scrapped -- sending around account
>numbers as magic keys to get payment is a stupid move. Its not
>suprising how large credit card fraud is.
>
>One of the great hopes I have for cryptographic technology is its
>ability to lower the incidence of fraud, and thus lower transaction
>costs a lot. Someday, hopefully, everyone will be able to be a credit
>card merchant because you won't have to trust the merchants not to
>steal.
>
>Perry
>
>
I'm told that the revenue lost to fraud in the
credit card industry is around .15 percent of the gross purchase value.

I'm also told that the credit card companies actually face higher costs
from disputes, i.e. when you call them up and busy out a person to 
resolve a question on you bill. 

Randy