Pre pay gas stations

[Eric]

I have recently returned from Florida, this may be in other states as well.
After swiping my credit card at a pump near Miami, I was prompted for a Zip code, well, being from Canada and only having a postal code, I had to go inside to pay. My question though, are credit card systems so advanced that they can confirm your mailing area? Or is this just "trying" to limit stolen card use?

I have no problem with security procedures that I can understand by the way.

[Guest]

They're in California too. They are a fraud prevention measure to prevent stolen credit cards from being used.

[N. A. Corbier]

A merchant can request the complete address, full name, ccv2, card number, expiration date, and in some cases picture of the cardholder as the transaction is taking place electronically. That's why many online sites want your full billing address, and it had better match exactly. Its being checked against what the processor gets from the merchant.

[Mr. Security]

A Hassle

I'm not thrilled with the idea of entering additional information after I swipe my credit card. As it is now, I have to choose to have a receipt or not and then opt for a car wash or not. The whole idea of using these automated machines is to expedite the transaction. If and when stations start requesting zip code, etc., I will start going inside and have the clerk process the transaction. That means more work for them, which is my way of making the inconvenience impact them instead of just me. Half the time I use the pumps the receipt printer is out of paper, which means I have to go inside anyhow.

[Eric]

Just did a search and found this. Survielance is increasing people...


ZIP code turns into a fraud deterrent
More businesses demanding it before taking a credit card

By Hiawatha Bray, Globe Staff | March 17, 2006

If you pull up to the self-service gasoline pumps in some Boston neighborhoods, or use a credit card to buy aspirin at the local Walgreens drugstore, don't be surprised if you're asked for your ZIP code.

It's an effort to fight credit card fraud at gas stations and retail stores. A thief usually won't know the ZIP code associated with the card he's using. So requiring the ZIP code is a simple way to reduce fraudulent purchases. Gasoline retailers say they ask for ZIP codes in areas where credit fraud is a problem.

''It is a geographical kind of thing, in a direct response to areas where there has been a high incidence of credit card fraud," said Betsy Eaton, spokeswoman for ExxonMobil Corp.

ZIP-code authorization may be coming to a gas pump near you, however. ExxonMobil plans to adopt the policy at many stations that use the Speedpass payment system.

Speedpass uses a radio frequency chip embedded in a device that can be attached to a key ring. The transponder on the chip is linked to the user's credit card account. By waving the Speedpass near the pump, the user can instantly pay for a purchase.

But a Speedpass can easily be abused if stolen. So some Exxon and Mobil stations will start using ZIP code authorization, although the company will not identify the stations or the schedule.

Walgreens in 2001 began demanding ZIP codes from all customers who use American Express cards. ''That program is actually only an American Express-sponsored program, and that is essentially fraud protection," said Walgreens spokeswoman Tiffani Bruce.

An American Express spokeswoman said the policy was initiated jointly by her company and Walgreens. She added that other national retailers, including Wal-Mart Inc., require customers to provide a ZIP code when paying with an American Express card.

In contrast, MasterCard specifically forbids merchants from requiring ZIP codes, except at unattended devices such as gas pumps, or for orders placed by phone, mail, or Internet.

Walgreens does not store customer ZIP-code data, Bruce said. Many retailers ask for customer ZIP codes for use in marketing research, but the credit card industry does not permit retailers to record any personal data provided through the credit card processing system.

Using the ZIP code to check fraud is possible because of Address Verification Service. A MasterCard spokeswoman said her company introduced the system in 1989 as an additional safeguard.

The system compares the ZIP code entered by the card user to the ZIP code of the actual cardholder.

It's not perfect -- people change addresses, after all -- but the system has helped card companies cut fraud, according to Bankcard Services, a Los Angeles firm that processes credit card transactions nationwide.

In Dorchester, the manager of Roy's Mobil said his station has been doing it for several years. A Mobil station near the intersection of Massachusetts Avenue and Melnea Cass Boulevard adopted the system only recently, however.

A Globe survey found that self-service pumps at Mobil stations in Roxbury and Mattapan require credit customers to punch in ZIP codes; Mobil stations in other parts of Boston and in the suburbs generally do not require this.

Some customers interviewed at a Mobil station in Roxbury weren't enthusiastic about entering ZIP codes.

''I think it's odd, to be honest with you," said Sarah Lafleur of Rockland. Jose Sanchez of Boston called the practice ''stupid."

But both customers have reconciled themselves to it, and Sanchez said it might even be a good idea. ''It does protect us from fraud to a certain extent," he said.

Meanwhile, companies that make service-station pumps hope to solve the fraud problem entirely with biometric systems, which will scan a customer's fingerprints.

''I think biometrics is going to be the next up-and-coming payment technology, if the public will accept it, said Mike Hardin, a spokesman for Dresser Inc., a Dallas manufacturer of gas-station pumps.

With a biometric system, a customer would put his hand on a fingerprint scanner. He'd then swipe one or more credit card associated with his fingerprints. From then on, he'd buy gas by touching a fingerprint scanner mounted on the pump.

Hardin foresees some drawbacks. There are 170,000 service stations in the United States, with about eight pumps at each one. Upgrading to biometric hardware would cost millions of dollars.

And biometric pumps would require customers to change their habits. ''People typically don't want to touch a gas pump any more than they have to," he said. ''It's considered dirty."

More important, many people will resist the idea of giving their fingerprints to a retailer without strong assurances their privacy will be protected.

Still, Hardin said, the rise of biometric gas pumps is just a matter of time.

''I think credit cards as we know them now will eventually disappear and go away," he said.

Hiawatha Bray can be reached at [email protected].
© Copyright 2005 The New York Times Company

[Mr. Security]

Interesting article. Admittedly, zip code entry will reduce fraud somewhat. However, if you do an Internet search using the name on the stolen credit card, finding the zip code shouldn't be a major obstacle, especially in cases involving identity theft.

I do concur that biometric fingerprint scanners are the wave of the future, dirty gas pump or not.

[LavianoTS386]

I will start going inside and have the clerk process the transaction. That means more work for them, which is my way of making the inconvenience impact them instead of just me.

It's not the clerk's fault.

[Eric]

Biometric devices like fingerprint, eye, facial etc. are becoming more prominent.


"More important, many people will resist the idea of giving their fingerprints to a retailer without strong assurances their privacy will be protected."

Millions of people entering Disney World are using fingerprint readers now, we have no idea how the records are stored and by who, we just want to get to the gift shops, uh, I mean, to see the park.

[Mr. Security]

It's not the clerk's fault.

That's true. But if the clerk is unable to keep up with the increased workload brought on by customers who choose to have their fuel payment processed by a human instead of a machine (the whole idea behind automation is to speed up the transactions) then management will question the value of purchasing pumps that inconvenience the customer. Hiring and employing people is expensive.

[Jackhole]

That's true. But if the clerk is unable to keep up with the increased workload brought on by customers who choose to have their fuel payment processed by a human instead of a machine (the whole idea behind automation is to speed up the transactions) then management will question the value of purchasing pumps that inconvenience the customer. Hiring and employing people is expensive.

I'm curious to know how entering your ZIP code is inconvenient to you.

[Lawson]

That's true. But if the clerk is unable to keep up with the increased workload brought on by customers who choose to have their fuel payment processed by a human instead of a machine (the whole idea behind automation is to speed up the transactions) then management will question the value of purchasing pumps that inconvenience the customer. Hiring and employing people is expensive.

I think that is just like someone at a work place deliberately unlocking locked doors, unlocking windows, leaving computers logged on, blocking fire extinguishers, lowering flags, etc... etc... etc... and reporting it to their supervisor immediately after, just to show the management that security officers are a waste of money.

I dont believe in "attacking" the little guy to get at the big guy.

[Mr. Security]

I'm curious to know how entering your ZIP code is inconvenient to you.

First, let me be upfront about the fact that this is NOT a major inconvenience by any stretch of the imagination. That having been said, here's what I dislike about this trend in requiring the customer to enter yet another form of data in order to complete what should be a quick transaction:

- Enter credit card just right. Too fast or slow and it will not be processed.
- Do you want a receipt? (Usually out of paper anyhow; but still requires entry)
- Do you want a car wash? Yet another selection.
- Enter your zip code.

It used to be that all you did was swipe your card and you were good to go. Soon it will be:

- What kind of vehicle are you refilling?
- What is your telephone number in case we need to contact you?
- What did you have for breakfast...just kidding; but you get the idea.

[Mr. Security]

I think that is just like someone at a work place deliberately unlocking locked doors, unlocking windows, leaving computers logged on, blocking fire extinguishers, lowering flags, etc... etc... etc... and reporting it to their supervisor immediately after, just to show the management that security officers are a waste of money.

I dont believe in "attacking" the little guy to get at the big guy.

Apples and oranges on that analogy.

[Lawson]

It may be apples and oranges, but it's still fruit.

You are making work for the cashier in hopes they will be overwhelmed and the zip code requirement will be axed from the pay at the pump process. You could easily punch in the zip code and be done with it, but instead you have decided to try to overwhelm the clerk with work.

How is that different than someone creating problems or extra work for an S/O for the sake of proving a point to a manager when they could just as easily go about their day relatively uneffected by security had they not done anything at all?

[Bill Warnock]

First, let me be upfront about the fact that this is NOT a major inconvenience by any stretch of the imagination. That having been said, here's what I dislike about this trend in requiring the customer to enter yet another form of data in order to complete what should be a quick transaction:

- Enter credit card just right. Too fast or slow and it will not be processed.
- Do you want a receipt? (Usually out of paper anyhow; but still requires entry)
- Do you want a car wash? Yet another selection.
- Enter your zip code.

It used to be that all you did was swipe your card and you were good to go. Soon it will be:

- What kind of vehicle are you refilling?
- What is your telephone number in case we need to contact you?
- What did you have for breakfast...just kidding; but you get the idea.

Mr. Security:
Here in Manassas and now Haymarket, I have given my ZIP code for the last several years when purchasing gasoline and at several electronics stores. At Radio Shack they have been asking for the past five years for my phone number and they put it into the computer and it gives them who I am and a photo. I see nothing wrong about this as it is but one more important step in combating credit card fraud.
I teach some of the new clerks how surreptitious run the top of the credit with their fingers. If it is very smooth chances are it is genuine. If the numbers are rough to the touch, chances are it is a fake. I learned that as one of the local ASIS Chapter meetings from the SAIC, Secret Service. Neat stuff!
Enjoy the day,
Bill