Should you sign the back of your credit card?

Credit card fraud is a very serious problem in the present-day world. Stories about hacker attacks, identity theft and skimming grab news headlines every day. If your credit card is lost or stolen, it can be used by other people until you notify the bank about this incident. Most banks have 24/7 customer support service to encourage prompt reporting. However, a thief can make numerous unauthorized charges on your credit card before you understand that it is in the wrong hands.
Trying to prevent credit card fraud, many users refuse to sign the back of their credit cards. Some people leave the signature line blank, while others write "see ID". They think that criminals won't be able to show identifying documents or forge their signature without an example. However, merchants say that the plastic is not valid unless it is signed. Is it really so? Let's analyze all arguments and decide whether it makes sense to sign the back of your credit card and write “see ID”.

Pros and Cons

Imagine that you have submitted a credit card application and got approved. After a couple of weeks your brand new plastic arrives in the mail. The do's and don'ts list instructs you to sign the back of your credit card before you start using it. The idea is that every time you make a purchase a sales person will compare your signature on the charge slip with the one on the back of your credit card to check your identity. 

Instead of signing credit cards, many users leave the signature line blank or write "see ID" or some variations of this phrase - “Check ID”, “CID”, “Ask for ID”, “See photo ID”. They hope that every time the card is used, a sales person will ask their identifying documents, for example a driver’s license to check the signature they provided on the charge slip or for visual identification of the customer. 

However, this tactics is often criticized. First of all, many sales persons even don’t look at the signature line after swiping your credit card! They may not have enough time or just don’t want to bother themselves with additional actions. 

Then, if a cashier reads "see ID", it doesn't mean that he or she will actually ask for your ID. They can just ignore your request because asking for ID verification can be regarded as a violation of the merchant's agreement with the credit companies. For example, according to Visa rules, merchants can’t make an ID a condition of acceptance and they can’t refuse to complete a purchase transaction if a cardholder doesn’t want to provide identifying documents. 

Some cashiers do ask to see your documents to make visual identification. However, most of them just look at the ID name, look at the name on the credit card and hand them both back. Of course, the names will match if the fraudsters stole the wallet with your drivers’ license or other ID! 

Keep in mind that sales persons are not experienced criminalists to make exact visual identification. They know that people often look different in photos than in the mirror! So they won’t spend hours to compare your form of nose or ears. They just think “white man with black hair – yes, white man with black hair”. 

In case a fraudster steals your credit card and sees a blank signature line, he or she can just sign it personally and recreate the same "signature" on a charge slip. Surely this signature would match all the receipts. Your name is printed on the credit card, so it is not difficult to create something that looks like your name. 

Merchant rules 

Keep in mind that if a cashier sees a blank signature line or "See ID", he or she can refuse to accept your plastic. As it is stated in your credit card agreement, you must sign the back of your credit card before using it. Your signature is not "See ID", yes? So it cannot be considered as a valid substitute for your signature.

Major credit card companies such as Visa, MasterCard and American Express have strict rules that don’t allow merchants to accept credit cards without a suitable signature at the back. An unsigned credit card is considered invalid and should not be accepted. 

If you have left a signature line blank, the cashier can ask you to sign the card in his or her presence before completing the purchase transaction. A refusal to sign also means that the credit card is invalid and cannot be accepted. If a merchant accepts a credit card with no signature on the back or "See ID" written where the signature should go, they may end up with financial liability for the purchase transaction in case the cardholder disputes the charge.

Signature on the back of the credit card is not just a security measure. It indicates that you agree to the terms and conditions of your contract. By not signing, you don’t accept the terms, so you are responsible for all fraudulent charges. So if all you write is ‘See ID’, credit companies may refuse to recompense you at all. 

Do you need signature on the Internet?

In reality, many fraudsters don’t waste precious time to practice signatures. They know that time works against them – you can report the loss any minute and the bank will block the account. So they try to use stolen credit cards as quickly as possible. 

Nowadays fraudsters prefer to make purchases online or via telephone. In the present-day world when you can buy everything you need online, does it really matter that you don’t have a signature on the back of your credit card? There is no need to handle your plastic to cashiers, so they won’t be able to check your ID. 

Self-serve payment systems (gas stations, self-checkouts at retail stores, kiosks, etc.) are also common targets for stolen credit cards, because fraudsters don’t need to verify the card holder's identity. 

A common countermeasure is to require the customer to key in some identifying information, for example the user's postal code. This tactics can prevent casual theft of a credit card found alone, but if your wallet is stolen, the thief can just look at the other documents (such as the U.S. driver license) to find out the necessary information. 

Any other security measures?

So should you sign the back of your credit card? Yes, you need to do it as soon as you get your card. Thus you will agree to the terms and conditions of your credit agreement and ensure your piece of mind during purchase transactions. But what about other security measures that you can take to guard against credit card fraud? The best rule to follow is simple: be careful. 

If you want to have additional security features to prevent unauthorized charges, consider applying for a credit card with your photo on it. It will make your visual identification more convenient and simpler – you won’t need to make people wait while you are looking for your identifying documents. And, in this case every cashier will pay attention to the photo and compare it with the customer.  

Put your credit card in another place aside from your wallet, perhaps in a pocket in your purse. That way if your wallet is stolen, the thief won't get access to your credit cards.

Write down all of your credit card numbers, expiration dates and bank telephone numbers for each credit card and keep this information in a safe place. If your wallet and credit cards are ever stolen, you will be able to notify the bank or credit company about it as soon as possible and block your account.