Do You Have to Sign Back of Credit Card? There was a time when signing your credit card was considered a crucial step in preventing credit card fraud. When you used your credit card to pay, the merchant compared your signature on the receipt to the signature on your card. The merchant would approve the transaction if they matched.
Signing the back of your credit card is a crucial security measure that protects the information on your card if it falls into the wrong hands. As a security precaution, merchants are required to verify that the signature on the card matches the signature on the sales receipt. They are not required to process the ensuing payment if the card does not have a signature on the back.
Purchases made with a credit card are now securely authenticated electronically. Signing your card isn’t as important as it used to be when it comes to preventing fraud. Should you, however, sign your credit card? Continue reading to learn more about signing your card, as well as how to avoid credit card fraud.
What Are the Upsides of Signing Your Credit Card?
To begin with, your credit card is technically not valid until you sign it. Many credit cards, in fact, have the phrase “Not valid without an Authorized Signature” printed on them.
Second, if your card is not signed, merchants may refuse your purchase. Although many cashiers will accept your card without comparing it to your signature, it is always possible that they will do so at any time.
Is it true that signing the card makes it less secure?
Some credit card users are under the impression that signing their card poses a security risk.
Your signature, on the other hand, is far from private, as it appears on every document, check, and credit card receipt you’ve ever signed. Your ability to effortlessly duplicate your signature on command is what sets you apart. Attempting to forge another person’s signature, on the other hand, takes much more time and effort.
Merchants require you to sign receipts so that they can compare your signature to the one on the back of your card.
Should I make a note on the back of my credit card that says, “See ID”?
Some credit cardholders prefer to write “See ID” on the back of their cards instead of signing their names. Why, though, is that?
Before authorising the sale, the cardholder’s signature on the receipt should be compared to the signature on the cardholder’s ID. Credit card fraud could theoretically be reduced as a result of this. However, for a variety of reasons, this may not work.
To begin with, signatures aren’t always required for credit card purchases under a certain value. Merchant agreements may even make it illegal for a retailer to require a cardholder to present their ID in order to approve a transaction.
If your credit card issuer requires you to sign it, if you write “See ID” in place of your signature, your card may still be considered inactive and invalid. Check your credit card agreement or call your issuer to see if you need to sign your card or if simply writing “See ID” is sufficient.
Protecting Yourself Against Credit Card Fraud
- Carry only the credit cards you require. Keep a list of the credit cards you have with you when you travel. Take down their full account numbers and expiration dates, as well as the issuers’ contact information. It will come in handy if your wallet, phone, or both are lost or stolen while travelling.
- To avoid having to keep and shred your paper statements, go paperless and start checking your credit card statements online. Simply keep your online passwords in a secure location and update them on a regular basis.
- Each month, review your credit card transactions for any errors or suspicious activity. Notify your card issuer right away if you see a transaction you don’t recognise.
The average consumer does not have the same level of security experience as credit card companies. Because most credit cards have a $0 fraud liability policy, they have a lot more to lose if someone forges your signature. If your card is stolen, you won’t have to pay. Companies are forced to bear the costs if a thief makes a large number of charges on a stolen card.
According to Hendrick, more companies are implementing two-factor authentication or one-time passwords, in which they send you an SMS text message with a code that you must enter online to verify your identity. Additionally, as of September 21, consumers can freeze their credit reports for free at Equifax, Experian, and TransUnion, ensuring that no one can open new credit cards in their name.
You can swipe or dip your card without having to interact with a human, thanks to chip cards and merchants with more automated checkout lanes. However, to keep your card safe from hackers and fraud, you must remain vigilant and follow the guidelines outlined above.