Many of us are used to manually or electronically sign receipts for credit card transactions at the cash register. However, there is one area behind credit cards where signatures may no longer be required, as some card issuers these days have not requested it or provided no space for signatures. However, many credit cards still require that they be signed. Therefore, if you have a blank white box behind you, take your time to insert the sign. It’s an outdated practice for many, but signing a box is not harmful in case a merchant checks the back of the card.
Learn more about the practice of signing the back of your card, how technology has changed the issue, how to protect your account and prevent fraud, and more ways to improve your credit card security.
History of signing credit cards
For decades, many credit cards have included a white signature box on the plastic back that the issuer requests to sign for effective activation.
Bankrate’s senior industry analyst Ted Rossman notes that credit card signatures were seen as fraud deterrent.
“The customer was supposed to sign at the time of sale, and the cashier was supposed to compare the signature to the signature on the back of the card,” Rothman said. “But the cashiers rarely asked. They were usually not in a position to accurately determine this type of thing or detect counterfeiting.”
Certainly, it’s been a while since the cashier actually glanced at the back of your credit card. Today, there are more successful fraud measurements and techniques in place that protect retailers and customers alike.
Do I need to sign the card?
If a new credit card has been issued, you will need to sign it if there is a white signature box on the back. That certainly applies when the credit card issuer indicates that the card or the letter that comes with it is not valid unless it has been signed approved.
“It’s technically required by many card networks and issuers, but most transactions no longer require signatures at the point of sale,” Rothman says.
Please note that some merchants may recognize unsigned cards as inactive and invalid, resulting in the card being rejected. If you are in doubt, contact the credit card issuer or consult the detailed printing of your credit card agreement to learn whether it is mandatory to sign your card.
When it comes to how to sign a card, make a good judgment when you think of it as a legal document of some sort. Make sure your pen is permanent and use the same signature in other official documents for consistency.
Don’t worry if you receive a new card that doesn’t have a signature box on the back. For example, my Prime Visa card doesn’t have any obvious space for signatures. When I called Chase and asked if I would like to sign the card, Chase said I don’t need to.
So, if you don’t see any boxes or other areas where you can sign, or if you’re not sure if you need to sign, you can contact your credit card company to confirm. No signature is required.
Do I need to write “View ID”?
What happens if you write the word “Show ID” on the back of your card instead of providing a signature? Is it allowed, or can it reduce the risk that someone will steal or try to copy your signature?
The cardholder’s intention here is simple: Keep your signature private – but when a merchant or cashier looks at the back of your card, they will notice the word “see ID” and ask for your driver’s license or other form of ID. Some merchant agreements prohibit retailers from encouraging cardholders to present identification as a condition for completing a sale.
Additionally, if the credit card issuer needs to sign a credit card but instead writes “View ID” then the card may be considered invalid and inactive.
Writing anything other than signature in the signature box cannot help you and can complicate the transaction. Therefore, it is best to avoid writing “see ID”.
Does signing a card prevent fraud?
Signing the back of a card will be of little use to prevent fraud as most cashiers and merchants will no longer compare the signature on the back of the card with a pen or digital signature that you provide at checkout. That said, if you have a white signature box on the back, signing the back of the card is not harmful.
That signature can provide an additional layer of authentication if the merchant requests it.
The role of technology in this change in practice.
Today, new credit cards are built into credit cards that use EMV (short for Europay, MasterCard, Visa) to store card holder information using metallic chips. A special reader is required to authenticate these chips. This improves security compared to credit cards that rely solely on magnetic stripes.
“Chip-enabled credit cards have become common in the last decade, offering more sophisticated fraud prevention techniques that almost completely replace the need to swipe a magnetic stripe card to sign a name and complete a transaction,” says Rothman.
Credit Card Security Tips
Follow these tips to improve security and prevent credit card fraud.
- Choose strong and unique passwords and pins that are different from those used for other accounts.
- Monitor statements and transactions online periodically.
- Please do not share your card information with others.
- Do not use your credit card to complete a public computer or public Wi-Fi transaction.
- Please note that we provide credit card details via telephone or online.
- Enable transaction alerts and two-factor authentication to add security.
- Take a close look at the irregularities that may indicate a scam and check the three free credit reports regularly.
- Shredded or destroyed closed or old credit cards.
If you are a victim of credit card fraud, sign up for a free or paid credit monitoring service designed to regularly scan credit reports for routine scans of suspicious or fraudulent activities. “Most of these services can be frozen to credits if necessary, if necessary, to prevent abusers from opening new credit lines without increasing approval,” says Sean Salter, an associate professor of finance at Middle Tennessee State University.
Conclusion
Do you think you no longer need to apply a pen to that plastic? Don’t assume it. If you are in doubt, check with the credit card issuer to see if the signature must be on the back of the card and where John Hancock will be placed.
“I think signing the back of the card is still a good idea,” advises Rothman. “It takes just a few seconds and there’s no reason not to.”
Follow best practices for secure card usage and storage to ensure that bad actors don’t steal your identity and use your card unauthorizedly.
