What's the big deal. No one pays for fraudulent use of your card, you say. Sure, but what about all the merchants you now have to contact to tell them of your new CC number? What about the inconvenience of having to wait for a new card to use with local merchants?
I have a solution. Here is the new way to buy with your card:
A. You go online or visit a merchant and you make a purchase but you don't pay for it at that instant.
B. The merchant gives you his/her ID number that's been issued by a CC conglomerate/association. Optionally, it is printed nearby where you can scan it.
C. You now take that number to your CC company online--on PC or phone--and you enter that number. If using a phone, you are already there ready to enter payment just after scanning the merchant's ID.
D. Up comes the merchant's info for you to verify that you intended to pay this particular merchant.
E. You enter the amount you are paying the merchant.
F. The merchant receives notice of payment and releases product to you or gives you a receipt for services rendered.
The beauty of this system is that the merchant and/or their staff NEVER sees or touches your CC. This, I believe is a win-win for all. Lost or stolen cards become a thing of the past. There is not even a need for issuing CC's or CC readers. Almost ALL FRAUD IS ELIMINATD. If their security people refuse to recommend this idea, everyone has to wonder why.
Online use should never be a problem with the above but what about if you are visiting a local merchant and your phone goes out? A different and perhaps more easily implemented temporary solution is to issue cards that have the CC number/expiration date and CCV printed on stickers that the user takes off and either stores the info in a secure location or memorizes it. Alternatively and perhaps better all around, is for the user to be issued a sticker with a QR code that he carries around with him for such occasions. To prevent unauthorized use, the merchant must obtain a photo ID from the user when a QR code is presented for purchases.
There are always solutions, but it should not be necessary to let anyone see your CC number, expiration date, and CCV ever again.
