Secure Electrans are on a mission to combat e-comm fraud. The concept
is simple - give consumers a free PIN pad for home use, so that every e-comm transaction can be done with the same level of security as in a physical store, and participating merchants can benefit from "a dramatically reduced fee."
The difference between "cardholder not present" and "chip & PIN" rates is less than 0.5%, so I wouldn't call that "dramatic". Also, I am surprised that card schemes would class transactions
where card details are entered manually - via a conventional PC - as "chip & PIN"... If card details are sent from HomePay securely over the Internet (some pictures do show HomePay with USB connector), why cannot the same - low-cost, I guess - device be used
in physical stores?
Also, why would consumers bother with HomePay? If there is a fraud, I can simply call my bank, tell them so and get a full refund. If merchants have to offer a discount or other incentive to make consumers use HomePay, doesn't that defeat the object of cost
Last but not least, if I were a fraudster, what would stop me from sending out thousands of similar (but bugged) terminals to consumers to collect their card and PIN details?..