eli5 How did Credit/Debit Cards work before Chip & Pin Machines?
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To look at the issue backwards, modern technology has allowed credit card companies to issue credit to less worthy individuals.
Being able to closely monitor every transaction and instantaneously truth off a card has caused an exponential increase in credit card issuance.
So it’s not that lack of technology made fraud easier, that was just the default status that was used in the risk calculation of determining who gets credit.
Over time the calculus has changed and pre-approved credit cards are sent out in the mail.
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