Comments on: Dishonesty Cured by Automated Tellers http://blog.benjaminfenster.com/2009/10/dishonesty-cured-by-automated-tellers/ A Blog of Musings and Mockery Thu, 19 Jan 2012 19:56:15 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: just pixels http://blog.benjaminfenster.com/2009/10/dishonesty-cured-by-automated-tellers/comment-page-1/#comment-11785 just pixels Sat, 31 Oct 2009 14:02:00 +0000 http://blog.benjaminfenster.com/?p=1313#comment-11785 The evidence is anecdotal to be sure. I guess corroboration would be an increase in people paying with $20 bills as ride-and-run's declined. There's an intriguing side story to this: Secure (I hope) wireless credit card transactions and the network coverage to support them. And simultaneously an increase in the number of transactions that assume the card has not been stolen or counterfeited. Banks or businesses or cabs are willing to accept the risk that the charge is fraudulent and can't be paid in exchange for a quicker or more convenient sale. About twenty years ago the amount of actual currency in circulation dropped when grocery stores began taking credit cards for payment. It turns out a lot of people would cash (literally) their pay check to buy food. The decline in cash carrying has led to a big decline in face-to-face robberies. People just don't have money to steal, and their credit cards are only good for a few hours before the bank's computer system blocks it. For the cab driver the mandated credit card machine may make his job safer as he'll have less cash on hand. But I think the credit card's days in that environment are numbered. In 5-10 years, we'll be paying for things like cab rides, fast food, gasoline via our cell phone. Just sit in the cab, stand near the register or beside the pump. Similar technology is in use today (tap card, Mobil has an RFID, EZPass of course). But the cell phone is the ubiquitous device everyone carries everywhere. Can you pay me now? The evidence is anecdotal to be sure. I guess corroboration would be an increase in people paying with $20 bills as ride-and-run’s declined.

There’s an intriguing side story to this: Secure (I hope) wireless credit card transactions and the network coverage to support them. And simultaneously an increase in the number of transactions that assume the card has not been stolen or counterfeited. Banks or businesses or cabs are willing to accept the risk that the charge is fraudulent and can’t be paid in exchange for a quicker or more convenient sale.

About twenty years ago the amount of actual currency in circulation dropped when grocery stores began taking credit cards for payment. It turns out a lot of people would cash (literally) their pay check to buy food. The decline in cash carrying has led to a big decline in face-to-face robberies. People just don’t have money to steal, and their credit cards are only good for a few hours before the bank’s computer system blocks it.

For the cab driver the mandated credit card machine may make his job safer as he’ll have less cash on hand. But I think the credit card’s days in that environment are numbered. In 5-10 years, we’ll be paying for things like cab rides, fast food, gasoline via our cell phone. Just sit in the cab, stand near the register or beside the pump. Similar technology is in use today (tap card, Mobil has an RFID, EZPass of course). But the cell phone is the ubiquitous device everyone carries everywhere. Can you pay me now?

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