Norman G. Vinson

Credit Card Chips Bad for Business? February 16, 2011

I just got one of those new credit cards with a chip on it. It came with a PIN that I have to remember to be able to use the card. Well, I already have a PIN for my Interac card. (A PIN that I chose myself, BTW, unlike the PIN for my credit card.)

Now I’m going to have to remember a PIN for each credit card I have? I can’t do that! It’s not like I have a dozen credit cards, but still, I’m not Watson.

So what’s going to happen? I suspect that in the near future, people will each primarily use one or two PIN-required credit cards only. Some credit cards are going to see a change in their business. The less popular cards are going to see a drop-off in transactions and the more popular ones an increase. Moreover, any credit card company smart enough to avoid requiring PINs should see an increase in business.