In the Netherlands the use of cheques is abolished in 2002. We all use internet banking now, using (at least) two-factor authentication, and we are able to transfer money from and to our current or savings accounts. Transferring money to other bank accounts (paying rent, paying to friends etc.) is also very easy.

Most banks also have mobile applications for smartphones making money transfer even easier. I'm able to transfer money to people I've already sent money to, by just using an iPhone app, and a personal pin code. When I loose my phone, I can just block the app, just like what I'd do when I loose my plastic (credit) bank card.

In Holland we also use iDEAL [1], a nation-wide system for online shopping. It works a little bit like OAuth; I provide the webshop the bank I use, the webshop requests a money transfer, the bank creates a unique transaction, the webshop sends me to the bank, bank requests credentials and processes payment, and sends me back to the webshop proving details about the transaction. This system sounds much more secure to me than the credit card paradigm; only using a credit card number, an expiration date and a 'security code'.

I just don't understand why the USA is still using a method so susceptible to fraud.

[1] http://en.wikipedia.org/wiki/IDEAL