My last trip to Fry’s Electronics resulted in a lesson in credit card processing. When I handed my card to the cashier to complete my purchase, she asked to see a photo ID. She matched the name on my ID to the credit card and then compared the picture to my face. I passed the test, completed the purchase, and went on my way.
However, it is amazing to me how infrequently stores will try to verify your identity when you make a purchase. Credit card fraud and identity theft are growing problems in our world of commerce. Retail establishments and your business can help prevent credit card fraud from happening by implementing a few simple checks:
1. Check Photo ID
Does your customer’s credit card name match their ID? Does the ID photo match the customer? If you explain that you need verify ID to help prevent fraud, most customers will gladly comply. They will view this interaction as a way to protect themselves from fraud.
2. Check Signature
Does the signature on the back of the credit card match what the customer just penned on the receipt? You don’t have to be a forensic handwriting expert to notice signatures that aren’t even close.
Little Effort, Big Benefit
These simple steps won’t stop all fraud from happening but they are a weapon in the arsenal that can easily catch the most obvious offenders. By implementing these easy checks, you’ll save your business the hassle of fraudulent chargebacks and your honest customers will appreciate your efforts to help prevent fraud.
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Glenn
November 14, 2005
Instead of signing the back of my credit cards, I write, with a sharpie, “ASK FOR I.D.” I’ve been doing this ever since the 80’s and I notice more cashiers are asking to see my ID. But I’m also noticing a trend where, at some retailers, you don’t have to sign anything if the transactions under, say $20. While I like the convenience of getting checked out faster, I’m not sure about the security.
Joe
November 16, 2005
Glenn: You’re right. It seems the more convenience we accept as a society, the more we sacrifice our privacy and security. This trade-off will eventually get the best of us if we aren’t careful.
Konstantinos
November 18, 2005
Related:The Credit Card Prank — Part 1, Part 2
Jim
November 18, 2005
@Glenn: Regarding your ‘ASK FOR ID’ method: you should know that the credit card companies will consider your card invalid should there be any claims of fraudulent transactions against it, which can open you up to (at least some) liability for the disputed charges. I’m not familiar with the exact procedure, however, and it varies considerably between credit companies (e.g., Visa, Mastercard, Amex). I only know this much because I used to do the same thing until my then-significant other, who worked for a credit card processing company, told me that not signing my card was essentially a breach of the contract between me and the creditor and they could refuse to honor the liability portions because the card wasn’t signed. What you should do is both sign the card and write ‘ASK FOR ID’ on it (you can write your signature as tiny as you like). Also, merchants are within their rights to refuse to accept your card unless it’s signed (in fact, they are supposed to refuse but obviously most don’t). This is why cards say ‘Not valid unless signed’ on the back.
@Joe: The signature on the back of the card is meant to be compared to the signature on your driver license, not the signature on the receipt as is generally done (erroneously and due to lack of proper training). This is much more reliable since the user would have to forge your driver license *and* your signature from the back of the card.
Joe
November 22, 2005
Konstantinos: very funny links!
Jim: I think any signature validation would be better than none. And since I’m proposing that merchants check both the signature and ID, they’d hopefully have the driver’s license there and could double check that signature as you suggest.