How Credit Cards Were Invented | Planet Money | NPR
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- Опубліковано 19 вер 2024
- Ever wondered why the chip on your credit card made it slower - or where the chip and stripe on your credit card even came from?
Here's the story. In the mid-'60s, the airline industry had a problem. The 747, the first real jumbo jet, had just been introduced. There were more passengers at the airport than before. More passengers meant longer lines. And that was especially bad because this was the era when customers paid for their tickets right there at the airport - often by credit card.
Back then, paying by credit cards was a whole ordeal. The airlines had to call up the bank manually in order to confirm the card. With lines growing, the airlines needed a faster process. So they called IBM to ask for help, and that's where our story (which also features some French fraudsters and a hippie inventor) begins.
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Host
Alex Goldmark
Originally Reported By
Alex Goldmark
Julia Longoria
Producers
Bronson Arcuri
Ben Naddaff-Hafrey
Editor
Bronson Arcuri
Animation
Marcie LaCerte
Cast
Alex Chen
Nick Fountain
Camilla Franklin
Alex Goldmark
David Gorsline
Ryan Kellman
Kenny Malone
Colin Marshall
Julia Melfi
Nick Michael
Ben Naddaff-Hafrey
Stephen Thompson
Series Creative Director
Mito Habe-Evans
Consulting Producers
Alex Goldmark
Robert Smith
Bryant Urstadt
Executive Producer
Keith Jenkins
Special Thanks To
TWA lounge at 1WTC by TWA Hotel
Marquet Patisserie
Archival Media
Prelinger Archives
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credit/debit card chip is only annoying in the US. Works great and fast anywhere else.
Chip is rarely used nowadays for small transactions in Europe. It's all contactless payments.
@@salamista In New York City, the MTA is working on a contactless system called OMNY for the subways and buses. They're just rolling it out in some stations where it's contactless, but it's planning to implement it everywhere in the city by 2023. I'd doubt it would be useful unless they changed their turnstiles.
Video needs more bagettes.
In short US was late to the credit card security game...now the hackers just go directly for the individuals based off the million data breaches
I'm so glad I've found this as well as the Podcast...absolutely love the quirkiness and effective story telling of these videos!
sorry to be so offtopic but does someone know of a trick to get back into an Instagram account..?
I was dumb lost the account password. I appreciate any tips you can offer me
A small business owner told me that when the new chip requirements were enacted, they had been given more then a year to comply. The problem is that you have to buy the chip/card reading device separately from the actually software to make the device work. Not all devices are made the same and they are not 100% compatible with all software. This is why some devices are unsecured, slow or simply don't work. So America took a system that works great elsewhere in the world and privatized it for profit over functionality.
Private companies are always more efficient than the government. They have an incentive to be careful with their money, the government doesn't care about taxpayer money!
PLANET MONEY IS THE BEST!
Came here because of the podcast. I have been listening for years! This is a great venture! Hope to see more of these.
This video is the most fun the internet will grant me today. Thank you!
What's annoying about chips; they are faster and you don't have to sign.
A funny thing my Japanese teacher told me: Here in Brazil, due to high crime rates and too much fraud, banks have some of the best card systems in the world, pretty much everyone has a debit card, everyone can pay delivery boys with credit card anywhere, you can buy a loaf of bread and pay using your card. And public transport has their own cards aswell, in some cities the buses dont even accept money. On the other hand, Japan being extremely safe, has no need for cards, everyone still uses money everywhere, so when he went there, he was completely lost. He simply didn't know how to act. Their culture is so different, he made a fool of himself several times, the Japanese enjoyed it thought, seeing a foreigner so confused and lost by their traditions.
I want a “pop up video” version of this with the names of all the staffers.
After working in retail for years...the chip is sooo much slower, plus our transactions are timed. It could also be because American systems are not up to date. Plus many stores have yet to install chip ready devices/software. But whatever...checks are still the least desirable.
Here in Canada everyone either uses the chip or more common uses tap. Most machines will not accept a swipe from a chipped card.
N P “transactions are timed” “checks are still the least desirable.” Back when I worked retail, there was a cashier who almost got perfect timed scores, almost as good as me. He was fast on computer, but you DID NOT want to be in his line. He took FOREVER!!! You see, you could “suspend” transactions. The idea was that you rang up $300 worth of groceries, but were waiting on a manager, or a large item, or price check, or the customer left to get one last thing, and wanted to ring up the poor sap waiting behind them who had just one item. Or, even, the machine broke, and needed to move the transaction to a different register. Anyway, the very second the last item was scanned, and the total button was to be pressed, this guy would suspend the transaction!!! Brilliant if you’re waiting on the old lady who had been there for 10 minutes just standing around and hadn’t even begun digging into her massive purse for a check book and pen she did not have, ya know, rather than spending that time having everything already filled out minus, the final total.
But what was irritating was the fact that even though this was 15 years ago, people rarely wrote checks. And with the expensive transactions, very few people paid with cash, so you weren’t waiting on them to count anything out. So now you were just waiting for them to dig out a card. And if they were like me, already had it out and in my hand well before everything had been scanned. So instead of hitting total and IMMEDIATELY scanning your card (you also could technically scan before total was hit) this guy would suspend the transaction without even checking first to see how ready you were!!! It would print out a bar code, and then he’d have to scan it, then wait for the computer to load 100 or so items back on, and THEN you could scan your card. (Even if you already successfully did so before the total).
I am grateful that the company never really made a big deal about check out times beyond printing out something and posting it near the time clock, but it still annoyed the hell out of me. It essentially added 1-2 minutes to every transaction.
why not mention of the manual machines that would take a carbon copy of the credit card? That was how it was done most of my childhood (d.o.b 1984)... I wanna say late 80's is when they would swipe and get actual approvals at stores.
Wait, so what is annoying with chips?
a little short on accuracy, facts, context
Who knew Kenny would make such a good French villain!
GREAT VIDEO
Now there's a tap feature on some cards!
I was just in the States last week and the chip worked faster than the strip. I guess the US finally caught up with the rest of the world...
Could have used more cigarette smoke, but this was really really good.
I love this fun way of learning about cc
Thanks so much, really glad to hear you liked it!
And yet still, as we cross into 2022, in spite of the entire rest of the world, the US still has not adopted chip-and-pin.
"Where we are today"? Really? I pretty much only use contactless payments, you don't have that in the states or what?
We've had contactless payment options for a few years now, and it's finally gaining steam. That still puts us out of date, but at least it won't be by a decade+ as it was with chip readers.
We do. It's mostly in phones so far.
I just got one of these chip cards and I can never tell which end to stick into the machine. Dosn't seemed to be marked anywhere on the card.
Rusty Cuyler lol it’s the side that would actually make the chip go into the machine..
I'm looking at my card right now. On the back side there is small square hologram chip like thing, on the front side BUT at the opposite end from the 'chip' on the backside, there is another square hologram looking thing. If I put the card in wrong, the machine tells me it can't read the card, so I have to take it out and flip the card around and then it works. But both square hologram chip things look exactly the same. So which one is the correct one to use. FYI, i've only had this new card for 2 weeks maybe. It would be sooooooooooooooooo simple if they're just print on the card 'insert this end'. I dunno but my card has a real chip at one end and fake one at the other.
Rusty Cuyler it’s whatever is on the front of the card. You need to push it in numbers facing up.
Thank you Aaron that makes sense and its a good way to remember it. I swear to ya, I was just at Lowes and it couldn't read my card, so I flipped it and put the other end in the machine and again it couldn't read the card, so the 3rd time I swept the card and it worked.
@@RustyCyler surely, you jest. I'm so sure that you put the chip, not the hologram into the chip reader. JIC, we are a respectful virtual community of people who enjoy these videos... but, swiped.
Now: Swish
Wait so Europe was using the chip reader decades ago?
Was that a Heathkit on the shelf?
How classic is that boom box?
where does paywave fit into this?
You seem to be implying that chip transactions are slower than magnetic ones, but I guess this isn't true.
Also chips allow for NFC/tap to pay which is the best thing ever for card payments.
Squeeonline no one has that in u.s. most of the stores don’t even have a chip reader working at all. And when you do use the chip, it’s much much slower. Swiping and using a pin is just fine.
NFC is a great way to get your CC skimmed by an NFC skimmer without ever taking it out of your wallet...
Mtrap1013 good luck finding an NFC credit card that has an expired. They were not that widespread to begin with. And are basically non-existent. The only thing NFC is now mobile payments with phones such as Apple pay Android pay Samsung pay and they use unique numbers every time and are much more secure than even EVM chip payment.
Mtrap1013 yeah no that can’t happen, NFC bank cards are encrypted there’s no way to skim it. There are two different types of frequency used for NFC cards I believe the one for bank cards is 13.56 MHz so you should look that up
Napsterbater that’s strange in the UK literally everybody has “contactless” some people just refuse to use it
Needs to be chip and PIN, like the rest of the world. That is much more secure.
Really? I thought it was there to track your movements.
Despite the video production, this whole story telling element is half assed as fuck
The moral of almost every business story is, "IBM's idea sucked."
I just want to be able to use my Apple Wallet everywhere, dammit!
🇺🇸
I agree that chip is annoying.
Apple Pay FTW
I love planet money but I just really don't like these videos... it feels like it took a lot of time that you could have put in a great story to put out a story that is mediocre at best, with some half funny pictures with basically no explainatory value. Plus now I can't even listen to it on my way to work... =(
If you have spare capacity please rather do more great stories.
First.