To break it down, when the customer enters in the PIN number via the terminal, this "unlocks" the Bitcoin address private key to proceed with the transaction. The transaction amount displays on the terminal screen, and the customer presses OK if it is correct. Simple.
So the machine -- 'PCI Compliant' or not -- signs the transaction with your private key, which you have exposed to it using your PIN? No thanks.
About the day after this gets introduced, somebody is going to create look-alike terminals that send your private key to haxxors in the Ukraine. How would one be able to tell you're dealing with an actual, non-nefarious terminal?
Really? Like seriously?
Then you might as well never use a debit or credit card terminal ever again. Let me know how that works out
Sorry but this is the real world. If you are that paranoid just stick to cash
How would one be able to tell you're dealing with an actual, non-nefarious terminal?
If you go to a legit store, you will be dealing with a legit terminal.
If a business uses anything compromised like what you are describing, the FBI and or Secret Service gets involved. (Yes, Secret Service investigates credit card fraud).
Like in this case: http://www.khq.com/story/21757307/secret-service-investigates-skimming-case-at-north-spokane-atm-crime-tracker-kalae-chock-has-tips-to-protect-your-account