Interesting fact
I wanted to share this blurb I read. Now, it was in an email from AllClear ID. It's a fraud protection group and I wanted to give them full credit and simply link to the article. I could not, for the life of me, find a URL that went to the blurb below. I didn't try all that hard, but I really couldn't find it in about 5 minutes of poking around. So, my apologies to the author, but here is the article that was in the newsletter for AllClear ID that I found so interesting:
Conventional wisdom holds that your signature on a credit card receipt is there to validate your identity and prevent identity theft. However, you may have noticed that some vendors don't even ask you to sign, and those who do don't always check to see if the signature matches the one on your card.
The Credit Card Prank is a website that chronicles one man who wanted to find out how crazy he would have to make his signature before anybody noticed. After several ridiculous drawings and names, nobody noticed. Not even when he signed with "I stole this card."
So if the signatures aren't protecting your identity, what are they for? It turns out that the presence of a signature affects who's liable if there is a fraudulent purchase. If a receipt is signed, the bank must reimburse the cardholder for fraudulent purchases. Otherwise, the store is held responsible. Therefore, stores must weigh the cost of possibly reimbursing fraudulent purchases against the cost of increasing time per transaction and paperwork. This is why, for example, fast food restaurants that process transactions quickly and sell cheap products often choose not to require signatures (source).
What does this mean for you, the consumer? According to federal law, maximum consumer liability in the case of a fraudulent purchase is $50 per transaction. Use the following tips to avoid and catch credit card scams:
• Set up email or text message alerts for transactions over a certain amount
• Save all credit card receipts until the end of your statement period to ensure the charge amount is correct
• Never leave tip or total fields blank: include dollar signs and decimals to ensure your barista or waitress doesn't give themselves a generous tip
Conventional wisdom holds that your signature on a credit card receipt is there to validate your identity and prevent identity theft. However, you may have noticed that some vendors don't even ask you to sign, and those who do don't always check to see if the signature matches the one on your card.
The Credit Card Prank is a website that chronicles one man who wanted to find out how crazy he would have to make his signature before anybody noticed. After several ridiculous drawings and names, nobody noticed. Not even when he signed with "I stole this card."
So if the signatures aren't protecting your identity, what are they for? It turns out that the presence of a signature affects who's liable if there is a fraudulent purchase. If a receipt is signed, the bank must reimburse the cardholder for fraudulent purchases. Otherwise, the store is held responsible. Therefore, stores must weigh the cost of possibly reimbursing fraudulent purchases against the cost of increasing time per transaction and paperwork. This is why, for example, fast food restaurants that process transactions quickly and sell cheap products often choose not to require signatures (source).
What does this mean for you, the consumer? According to federal law, maximum consumer liability in the case of a fraudulent purchase is $50 per transaction. Use the following tips to avoid and catch credit card scams:
• Set up email or text message alerts for transactions over a certain amount
• Save all credit card receipts until the end of your statement period to ensure the charge amount is correct
• Never leave tip or total fields blank: include dollar signs and decimals to ensure your barista or waitress doesn't give themselves a generous tip