The idea behind Coin -- a device that can store all of your credit cards, gift cards and rewards cards -- sounds great in theory, but may be a bit too good to be true in reality.
When the International Business Times reported on Coin in November, we noted there is concern that Coin could be an easy tool for credit card fraud. Coin told IBTimes that the device is “128 bit encrypted and all information is backed up on Coin’s secure servers,” but a look at its terms of service as raising even more concerns about the safety of Coin.
“You are solely responsible for your own losses or losses incurred by Coin and others due to any unauthorized use of your account,” Coin’s terms of service state. In other words, if the device malfunctions, gets hacked, is stolen or damaged, or if Coin’s servers are hacked, Coin accepts no responsibility.
Another problem is that Coin’s battery only lasts two years and cannot be recharged, meaning that users will have to buy a new one every two years. At $105 per Coin, that’s a pretty expensive fee.
Coin is temporarily selling the credit card device at a discounted $55, but device hasn’t even gone into production yet.
Coin said it is confident with its product and hopes to have the cards available for the summer, but the device has not been made available for independent review yet. The security issues and battery life may be enough cause for concern to keep early adopters from purchasing Coin.