Chase trying to circumvent new overdraft laws already
According to this very enlightening post on the Complaints Board, one way Chase is trying to circumvent the requirement in the Credit Card Reform Act of 2009 that automatic overdraft protection only be applied to accounts that specifically opt-in is to create a card that automatically enters the pin numbers instead of the customer doing it themselves, which technically circumvents the requirement that overdraft protection. They are enticing customers to use this new card by changing their rewards program so that it only applies to this new card type.
Apparently their letters to account holders trying to scare them into signing up for overdraft protection aren’t working well enough.
Bad bad Chase, Fees & charges | admin May 13, 2010
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By coakl, January 10, 2011 @ 6:00 pm
The linked post refers to something called “Blink.” Short answer: Blink is not an evil workaround.
Blink is an RFID chip in the card that lets you pay by hovering your card over a special reader. The card does not have to make contact with a merchant terminal’s stripe reader. Lots of other credit and debit cards have the same feature (it may be called a different name).
Blink does not automatically enter your PIN nor is the PIN stored on the Blink RFID chip. Blink is just another “purchase made without PIN” method.