Say Goodbye To Credit Card Signatures

Say Goodbye To Credit Card Signatures
Banks, Insurance & Financial Services

In North America, major credit card companies will no longer require customers to sign for purchases

Jiwon Kim
  • 13 april 2018

At a certain point in time, requiring signatures for credit card purchases might have been the best way to prevent fraud. However, it turns out that signatures do not really help because merchants do not really check them. Therefore, signing a bill or a receipt is actually something that has little value to validating someone’s use of a credit card. As a result, now most major credit card companies in Canada and the U.S. will no longer require consumers to sign off a credit card transaction.

This will speed up the payment processes and improve the customer experience. Merchants can decide if they want to ask for a signature after April 13, but will not be legally required to do so by credit card companies. Instead of signatures, credit card companies are focusing on other ways to secure the payment process. This includes the transition from swiping a credit card to inserting a chip and also using other measures to detect fraud early on.

Mastercard is one of the credit card companies leading this transition. Last October, they conducted some research and found that 80% of transactions within stores already did not require signatures. They also found that consumers care about saving time, so it makes sense to get rid of what is becoming an outdated practice.

Mastercard

At a certain point in time, requiring signatures for credit card purchases might have been the best way to prevent fraud. However, it turns out that signatures do not really help because merchants do not really check them. Therefore, signing a bill or a receipt is actually something that has little value to validating someone’s use of a credit card. As a result, now most major credit card companies in Canada and the U.S. will no longer require consumers to sign off a credit card transaction.

+banking
+Canada
+credit card
+credit cards
+financial services
+Frictionless Transaction
+Market Research
+MasterCard
+retail
+Transactions & Payments

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