Coin
SUPER clever idea -- kudos for that.  In theory, this is awesome.  As a consumer, I love it.<p>As a merchant, however (which I am), there is no chance I would accept this.  None.  Unless the issuers (that is, Visa, MC, Amex) drastically change their policies, which I don't see happening anytime soon.<p>Why?  Because the issuers are very clear about a few things:  When push comes to shove and it REALLY gets down to it, unless the merchant takes a physical swipe of the actual card AND has backup to prove it (i.e. an imprint of the physical plastic), the issuers will side with a consumer in the event of a fraud dispute.<p>So why, do you ask, do most merchants not bother taking imprints of the actual cards?  Because a visual verification and physical swipe is usually enough (for 99% of cases).  Instances of fraud via card duplication are rare, so it's usually not worth the hassle.  But in some cases, it is.<p>My business runs large-ticket purchases though CCs (average is $2000), and we take super extra precautions when our customers buy from us.  We take magnetic swipes, visually verify, AND take physical imprints.<p>We've lost several chargebacks because of lack of doing this.  You'd be surprised how these little-known rules crop up when you least expect them.  "Sorry, customer claims charge not authorized.  Merchant doesn't have physical imprint.  Chargeback approved."  It's happened and we've been defrauded out of $thousands because of it.<p>The ONLY way we've been able to successful combat chargeback fraud is through the multi-layered approach.<p>Anyway, I know this is a fairly esoteric perspective and my business may be different from lots of others where this isn't an issue, but I have a feeling V/MC/Amex aren't going to get behind this.