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Is PCI a white elephant?.. Or is Dave Birch wrong?..

The most frequently cited and referenced part of PCI DSS relates to protection of cardholder data, mainly card number (PAN), cardholder's name and card expiration date.

Now, Dave Birch of Consult Hyperion (one of the leading consultancies in the payments industry) as well as Mark Austin, head of contactless at Visa Europe, are saying that the information "on the front of a bank card" is not... sensitive. At all! 

Hm, the information on the front of your bank card is exactly the data PCI is making so much fuss about: PAN, cardholder name and the expiration date...

Merchant and payment device developers go through a lot of expense and effort to protect PAN, in particular. Why bother, if that data is easily available to anyone with an NFC phone. 

Whilst we are on the subject, let's open another can of worms - do we really need PAN on the card? We had a lengthy discussion with MasterCard about that and they said... "Well, that depends." That was after we pointed to a Barclaycard NFC sticker which is, essentially, a... contactless bank card. It has neither name, nor PAN, nor the expiration date on it. And works just fine.

On a related note, as part of our market research programme, for the past few months I have been attempting to pay in shops with my... Priority Pass. Not a single shop assistant ever (!) questioned that card. Some noticed it doesn't have chip and suggested that I... use a mag stripe - "It's one of those American cards, init, mate?" Absence of Visa, MasterCard or Amex logo was never part of the conversations I had at the till.

To sum it up, my card card number is not a big deal. And I even don't need one. (The same goes for the card scheme logos, but that's a subject for another blog post).

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Comments: (4)

David Birch
David Birch - Tomorrow's Transactions - London 26 June, 2013, 19:39Be the first to give this comment the thumbs up 0 likes

I didn't say that the information wasn't sensitive, I said that you could read it from the front of the card so the supposed NFC vulnerability is uninteresting. Yes, I am not a fan of PCI-DSS, but that still doesn't mean I want people to store huge quantities that data without security.

To reduce fraud we must make it either harder to steal the cardholder data (the PCI-DSS expensive route) or make it harder to use the cardholder data (the 2FA route). I favour the latter.

A Finextra member
A Finextra member 27 June, 2013, 01:53Be the first to give this comment the thumbs up 0 likes

I agree with you, Dave, re 2FA. We need neither PAN, nor CVV in the clear on the card for retail transactions. For e-comm, we can either use tokenization (Tom Noyes has good posts on the subject, e.g. http://tomnoyes.wordpress.com/2013/02/20/payment-tokenization/) or, at the very least, dynamic CVV. Those simple measures alone would greatly improve security, without the expense, complexity and hassle of PCI DSS...

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 27 June, 2013, 16:50Be the first to give this comment the thumbs up 0 likes

@AlexanderP: Your image is of Multipass whereas your hyperlink goes to the website of one PriorityPass, which displays card #, cardholder name and expiration date! On another note, like I mentioned in Why Is This Data Breach Different?, I prefer more protection than just PCI-DSS instead of 2FA.  

A Finextra member
A Finextra member 27 June, 2013, 16:56Be the first to give this comment the thumbs up 0 likes

MultiPass is an example of PAN-less card (with a modified scheme logo). Priority Pass example illustrates that the merchants don't really care about such things as scheme branding (or PAN) - same logic as a bank-issued contactless sticker.

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Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


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