Path: utzoo!attcan!cmtl01!matrox!uvm-gen!uunet!lll-winken!ames!netsys!vector!nobody
From: wmartin@ALMSA-1.ARPA (Will Martin -- AMXAL-RI)
Newsgroups: comp.dcom.telecom
Subject: PINs and Calling Cards as credit cards
Message-ID: <telecom-v09i0028m01@vector.UUCP>
Date: 24 Jan 89 19:31:09 GMT
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X-TELECOM-Digest: volume 9, issue 28, message 1

The recent discussion on PINs on cards in cleartext, and the Moderator's Note
in Digest #23 on treating a Calling Card like a credit card (in regard to
the individual being responsible for the first $50 in illicit charges on
that card if it is stolen) prompts this note:

First off, here in SW Bell territory, the PIN has *always* been on both the
cardboard SW Bell calling card and the plastic AT&T card. So I was a bit
taken aback when reading the posting of the individual who was outraged
that the PIN was on his new card. I would contend that NOT having it on
the card was the exception, and his telco was merely coming into line with
the other BOC's in putting it on the card. (This is not a claim that
having it on the card is a *good idea*; it just is how things are.)

As regards equating calling cards with credit cards, I think I differ
with the moderator on this. Also, I would be interested to see references
which state that the calling card actually does fall under the federal
credit-card regulations. As I recall, I never did request a calling
card. It was sent to me by the telco on their initiative. I seem to
recall that credit cards sent by an issuer when there was no specific
request or application for them made by the individual do NOT fall under
the $50 rule, but that those are specifically exempted. Also, I don't
think that credit cards can legally be sent out to non-requesters, like
they used to be. (If you recall, years back, firms like oil companies
would send out credit cards en masse to college graduating classes and
suchlike groups. That no longer happens. I think that was made illegal.)

Since I haven't changed phone service in many years, I have no way of
knowing how calling cards are now distributed. Maybe some others on the
list can post their experiences; do you get a calling card in the mail
automatically without requesting it when you set up new phone service?
Or do you have to specifically request one to receive one (in writing or
just verbally)?

The other aspect that makes me wonder if calling cards are legally
equivalent to credit cards is the fact that there is usually a secondary
element of identification with the use of a credit card. In person,
there is a signature. For telephone orders of merchandise to be shipped,
some firms will ship only to the address-of-record of the credit card
holder. (This latter admittedly breaks down, especially with regard to
having gifts shipped to other people at Christmas, etc.) Plus there is
a verification or check with the credit card company for charges over a
certain dollar amount.

Calling cards have no such secondary identification, nor do they have
the verification process. (If they DID have the PIN issued separately,
and require the user to type it in to complete the call, like an ATM
requires for a transaction, then they *would* have a secondary
identification, of course.) I believe that the calling-card-number info is
stored and then run through the billing process in batch mode daily,
right? So the use of a stolen calling card or an illicitly-acquired
number would only be detected after-the-fact in that batch run. (I may
well be wrong on this -- maybe there is a massive central on-line database
to catch illegally-used calling card numbers as they are used. Is there?
There would have to be one for each LD carrier, I guess...)

All this leads me to contend that calling cards are not legally the same
as credit cards. Therefore, we cannot maintain that regulations referring
to credit cards apply to calling cards. However, that doesn't mean that
tarriffs or contracts do not contain wording that may actualy result in
the obligations of a calling card holder being similar to those of a
credit card holder. But that would then differ with each issuer.

Will Martin