ID checks, minimum purchase rules a no-no with credit cards on clarkhoward.com

Have you ever used your credit card and been asked for ID or told you'd have to make a minimum purchase? Both stipulations are against the merchant guidelines that govern Visa and MasterCard.

Clark is not upset when he's asked for ID; he sees it as another safeguard, even if it is against the guidelines. However, there is some recourse available if you are peeved.

MasterCard has a simple-to-use form where you can alert them if a merchant required ID or a minimum purchase. Clark has no idea what becomes of this info once you submit it to MasterCard.

Visa, on other hand, has no such procedure in place. So they have a rule, but no enforcement.

The underlying issue here is that we're still using '60-era magnetic strip technology for credit cards. Europe and Asia, meanwhile, are years ahead of us with their smart chip technology. With the smart chip, you're required to enter a secret code to use your credit card. But the banks that issue cards don't want to spend the money to have a safe system on our shores!

What others are saying

Showing ID to make CC purchase
After standing in long lines at Best Buy at Christmas, I decided to start challenging the requirement to show my ID. I did some research and found it wasn't required. I started contacting the corporate offices of stores where I am asked for ID, and so far, none of them require ID. I can't believe that a cashier has a need to see my ID to begin with -- who made them fake ID experts? I don't think it safeguards me to have me show everyone in the store where I keep my ID. This isn't protecting me in any possible way, it's allowing people to see my identification, know my address, etc. I think it's an invasion of privacy, and that consumers need to speak up. As a product of the 1960's, I have concerns about this "big brother" world we're all allowing ourselves to live in after 9-11, I'm wondering what we'll put up with next, maybe a chip implanted in our heads?
By Suzie @ 02/19/09 12:59:35 PMreport abuse
Identity Protection
Providing supplemental ID in the form of driver's license to a cashier is reckless and dangerous to your identity. Employees of retailers, repair shops, doctor's, dentists, utilities, etc...routinely collect this information to use or sell to someone to use in applying for credit with a third party. It is untraceable to the point of origin and for the idiot merchants that state that they ask for your driver's license to protect you are full of crap.
By Jimmy McGrath @ 02/14/09 04:59:11 PMreport abuse
cc fraud
how about making the punishment stiffer like life in prison (not the country clubs we currently have) then it would end once the few asses got put away they wouldnt be able to be repeat offenders. instead of subjecting the law abiding people to more hoops to jump through. problem solved!
By mike @ 01/24/09 09:07:36 AMreport abuse
Reloadable Credit Cards
I have been stung enough times on ordering on the Internet that from now on I want to use a reloadable credit card, one separate from my bank account ... perhaps even having a different one for each purchase.
By Nan @ 01/02/09 12:36:54 AMreport abuse
To those who willing hand over ID, consider this situation.
I was at a store and I saw the cashier ask the customer ahead for a driver's license. The customer showed it. Note driver's licenses are very easy to forge. Bob Aaron, Toronto real estate lawyer and Toronto Star columnist, got a driver's license for his dog. Apart from the dog's photo, you couldn't tell it was fake. Anyways, if the cashier records the driver's license number, they are contributing to fraud if that cc slip gets in the wrong hands. The cashier then didn't even look at the signature. When I questioned this practice, the cashier said they were told not to check signatures. So the customer could sign whatever they wanted, then challenge the purchase on their statement and the charge would get reversed as the signatures did not match. It is the signature that counts, not the photo ID. So please tell me how they are protecting anyone by asking for unnecessary information. In this case, the store's policy is contributing to fraud.

Let's not even get into the situations where someone doesn't have photo ID. The bank didn't ask me to show photo ID when I applied for my CC. If I didn't drive (and not everyone does), I wouldn't have any photo ID.
and------------------------------------
To those who willing hand over ID, consider this situation.

On Friday, I was at Toys R Us. They now have a policy of requesting photo ID for cc purchases over $100. The customer in front of me spent over $200, so they asked him for ID. He willingly handed over his Driver's license. The cashier then said that they do this now to protect against identity theft as she wrote the driver's license number down on the store copy of the receipt. I pointed out that she was not preventing identify theft as people who make fraudulant cc's can easily make fraudulant ids, but that she was actually contributing to fraud by making it easier for someone to obtain the info necessary to steal someone's identity if that receipt got into the wrong hands. She said it wouldn't but I pointed out that alot of identity theft occurs from store employees who skim cc. This is especially a concern at Christmastime when stores hire temporary staff.

When I paid for my purchase without ID, this same cashier didn't even look at the signature. As I was walking out the door, the customer pulled me aside and said that I was right that he should not have given them the id as they now had the info necessary to steal his identity.

So those of you who believe in showing id, what would you do if the cashier started recording your driver's license number on the store receipt? Note the store copy has your name, full CC number and expiry date.
By MrNaughty @ 12/08/08 09:32:09 PMreport abuse
Asking for ID
Does this apply if the back of the cards are unsigned? My understanding is that the cards are invalid if unsigned.

As a retail associate, I only ask for ID when the person hasn't signed their card. I do this because most places I've worked in the past have told me not to accept them if they are unsigned unless the customer can provide a matching signed picture ID. I know some other places won't accept them at all if you haven't signed them because they say the cards aren't valid unless they've been signed. Isn't it suppose to be a safety precaution? If Visa and MasterCard didn't have that sign plate on the back, we wouldn't have to check. The theory is that when you sign the receipt slip, we check the receipt signature against the card signature to be sure they match; if they don't we're suppose to ask for a picture ID to make sure someone didnt STEAL YOUR CARD.

When we take transactions over the phone, our system asks for the phone number and numeric address to verify the card. Maybe the Gas station pumps asking for your zip code are a similar verification? The whole idea I'd think is check points to stop someone that might be trying to use a stolen card, just remember a thief can empty your accounts and max your credit limits in a matter of hours if left unchecked.

If you leave the signature plate on the back of your credit cards blank - you leave it open for someone else to sign YOUR NAME in THEIR handwriting, and possibly make a photo ID with THEIR PICTURE and THEIR signature to match.

Just remember that a merchant asks for an ID, they're doing so for your protection. It may seem inconvenient now, but you'll thank them if you ever lose your wallet and they stop a thief for you.

I'd be happy if we got card readers that required you to enter a pin so we could skip the signature and ID checking all together. Then if you put your pin in your wallet and someone stole it all, you'd only have yourself to blame :P
By Marcia @ 12/03/08 10:58:53 PMreport abuse
credit card signature
I work for the U.S. Postal Service as a retail associate, and I had a customer tell me that Clark Howard said on his show that you should never sign your credit card. Well the U.S. Postal Service policy is that we cannot accept a credit card that does not have a signature, what we are told to do is to match the signature on the Drivers Liscence with the signature on the back of the credit card. Also every credit card says on the back that the card is not valid unless signed, plus it says Authorized signature. We do not require this on debit cards. So next time your in your local Post Office ask them about their credit card signature policy.
By Waldemar Borrero @ 10/07/08 08:40:25 PMreport abuse
No signature
VISA/Mastercard agreements permit merchants to not require a signature if under a certain amount (usually $25), if they sign up for that program. The fee they are charged is different, but it speeds up transactions at the point of purchase, so many large retailers concerned about speed of service are moving that way. They pay a slightly higher fee because VISA/Mastercard accept a higher risk, but most credit card fraud is usually in large dollar purchases, not the small ones. When charged a fee for using a credit card, you can report it (must provide copy of sales slip), and get the fee credited back to your account.
By David @ 10/04/08 11:38:01 AMreport abuse
RFID
Chip and Pin is coming to Canada for credit and debit cards
By IDID @ 09/05/08 06:26:51 PMreport abuse
RFID
A chip and pin is good, so is a digital watermark, but c.c. companies want to go with RFID - which can be easily cloned
By Cheapo Groovo @ 08/13/08 05:42:37 PMreport abuse
merchant required ID
where a merchant requires ID, try having them call MC concerning the issue. in my experience the MC employee will not only lack knowledge of this policy but will back up the merchant
By deadbeat dad @ 08/12/08 10:13:21 PMreport abuse
ID checks, minimum purchase rules a no-no with credit cards
i've had the post office require a minimum of a $1.00 purchase. i have also had wal-mart ask for id when my purchase was over $100.00.
By charlotte @ 08/12/08 06:58:55 PMreport abuse
Gas savings
I use a Walmart credit card to purchase gas at Walmart which gets me another $.03 a gal off the posted price. they are generally the cheapest gas anyway, plus I get 1% cash back on all purchases. those who don't want the credit card can get a reloadable card at the store which still gets you the $.03 off at the pump. hope this saves people money
By Jack Barrett @ 08/12/08 03:42:59 PMreport abuse
id checks
Home Depot requires this for credit card purchases.
By red @ 08/12/08 12:53:31 PMreport abuse
Credit Cards & ID Checks
I have written on the back of all my cards "ID Required" and they seldom even look. I want them to identify me for my protection.
By Sue Powell @ 08/12/08 12:38:48 PMreport abuse
Credit Cards & ID checks
I think the worst thing is that some places don't require even a signature if the purchase is under a certain amount. Home Depot and Walgreens are the worse offenders
By mary @ 08/12/08 08:02:04 AMreport abuse
ID Checks
I disagree with Clark. If checking ID is for my protection, I should have a choice to be protected or not. The fees we pay for using credit cards (interest, etc.) are not only for the use of the money. The fee is also for the convenience of using the card. By requiring ID the merchant is taking away some of the convenience.
By PJ @ 08/12/08 05:16:42 AMreport abuse
Chargeback
Buy extra merchandise and then dispute the charge with your credit card company citing the merchant's minimum purchase requirement. The merchant is extorting money from the customer.
By Enoch Drebber @ 08/12/08 12:39:24 AMreport abuse
credit card
I read about 10 years ago in a paper in Ca. the small news clip said" retail places could not charge a higher price for their product if a customer used their card over cash." Gas stations are the biggest breaker of this Law? Or is there no law? Or only Visa/MasterCard rule? How can one in force it? This is in Ca.
By Raymond @ 08/11/08 09:30:38 PMreport abuse
They should require, not forbid, ID checks!
They should require, not forbid, ID checks!
By MC @ 08/11/08 05:13:27 PMreport abuse
Speedway / SuperAmerica
Speedway has started requiring holders of their Chase Speedway Mastercard to enter their zip code when paying at the pump. This is very annoying and may be a violation. I have complained to them, to no avail. I have now submitted a claim to MasterCard. We'll see what happens.
By Pete @ 08/11/08 04:52:15 PMreport abuse

Showing ID to make CC purchase

After standing in long lines at Best Buy at Christmas, I decided to start challenging the requirement to show my ID. I did some research and found it wasn't required. I started contacting the corporate offices of stores where I am asked for ID, and so far, none of them require ID. I can't believe that a cashier has a need to see my ID to begin with -- who made them fake ID experts? I don't think it safeguards me to have me show everyone in the store where I keep my ID. This isn't protecting me in any possible way, it's allowing people to see my identification, know my address, etc. I think it's an invasion of privacy, and that consumers need to speak up. As a product of the 1960's, I have concerns about this "big brother" world we're all allowing ourselves to live in after 9-11, I'm wondering what we'll put up with next, maybe a chip implanted in our heads?

By Suzie @ 02/19/09 12:59:35 PMreport abuse

Identity Protection

Providing supplemental ID in the form of driver's license to a cashier is reckless and dangerous to your identity. Employees of retailers, repair shops, doctor's, dentists, utilities, etc...routinely collect this information to use or sell to someone to use in applying for credit with a third party. It is untraceable to the point of origin and for the idiot merchants that state that they ask for your driver's license to protect you are full of crap.

By Jimmy McGrath @ 02/14/09 04:59:11 PMreport abuse

cc fraud

how about making the punishment stiffer like life in prison (not the country clubs we currently have) then it would end once the few asses got put away they wouldnt be able to be repeat offenders. instead of subjecting the law abiding people to more hoops to jump through. problem solved!

By mike @ 01/24/09 09:07:36 AMreport abuse

Reloadable Credit Cards

I have been stung enough times on ordering on the Internet that from now on I want to use a reloadable credit card, one separate from my bank account ... perhaps even having a different one for each purchase.

By Nan @ 01/02/09 12:36:54 AMreport abuse

To those who willing hand over ID, consider this situation.

I was at a store and I saw the cashier ask the customer ahead for a driver's license. The customer showed it. Note driver's licenses are very easy to forge. Bob Aaron, Toronto real estate lawyer and Toronto Star columnist, got a driver's license for his dog. Apart from the dog's photo, you couldn't tell it was fake. Anyways, if the cashier records the driver's license number, they are contributing to fraud if that cc slip gets in the wrong hands. The cashier then didn't even look at the signature. When I questioned this practice, the cashier said they were told not to check signatures. So the customer could sign whatever they wanted, then challenge the purchase on their statement and the charge would get reversed as the signatures did not match. It is the signature that counts, not the photo ID. So please tell me how they are protecting anyone by asking for unnecessary information. In this case, the store's policy is contributing to fraud.

Let's not even get into the situations where someone doesn't have photo ID. The bank didn't ask me to show photo ID when I applied for my CC. If I didn't drive (and not everyone does), I wouldn't have any photo ID.
and------------------------------------
To those who willing hand over ID, consider this situation.

On Friday, I was at Toys R Us. They now have a policy of requesting photo ID for cc purchases over $100. The customer in front of me spent over $200, so they asked him for ID. He willingly handed over his Driver's license. The cashier then said that they do this now to protect against identity theft as she wrote the driver's license number down on the store copy of the receipt. I pointed out that she was not preventing identify theft as people who make fraudulant cc's can easily make fraudulant ids, but that she was actually contributing to fraud by making it easier for someone to obtain the info necessary to steal someone's identity if that receipt got into the wrong hands. She said it wouldn't but I pointed out that alot of identity theft occurs from store employees who skim cc. This is especially a concern at Christmastime when stores hire temporary staff.

When I paid for my purchase without ID, this same cashier didn't even look at the signature. As I was walking out the door, the customer pulled me aside and said that I was right that he should not have given them the id as they now had the info necessary to steal his identity.

So those of you who believe in showing id, what would you do if the cashier started recording your driver's license number on the store receipt? Note the store copy has your name, full CC number and expiry date.

By MrNaughty @ 12/08/08 09:32:09 PMreport abuse

Asking for ID

Does this apply if the back of the cards are unsigned? My understanding is that the cards are invalid if unsigned.

As a retail associate, I only ask for ID when the person hasn't signed their card. I do this because most places I've worked in the past have told me not to accept them if they are unsigned unless the customer can provide a matching signed picture ID. I know some other places won't accept them at all if you haven't signed them because they say the cards aren't valid unless they've been signed. Isn't it suppose to be a safety precaution? If Visa and MasterCard didn't have that sign plate on the back, we wouldn't have to check. The theory is that when you sign the receipt slip, we check the receipt signature against the card signature to be sure they match; if they don't we're suppose to ask for a picture ID to make sure someone didnt STEAL YOUR CARD.

When we take transactions over the phone, our system asks for the phone number and numeric address to verify the card. Maybe the Gas station pumps asking for your zip code are a similar verification? The whole idea I'd think is check points to stop someone that might be trying to use a stolen card, just remember a thief can empty your accounts and max your credit limits in a matter of hours if left unchecked.

If you leave the signature plate on the back of your credit cards blank - you leave it open for someone else to sign YOUR NAME in THEIR handwriting, and possibly make a photo ID with THEIR PICTURE and THEIR signature to match.

Just remember that a merchant asks for an ID, they're doing so for your protection. It may seem inconvenient now, but you'll thank them if you ever lose your wallet and they stop a thief for you.

I'd be happy if we got card readers that required you to enter a pin so we could skip the signature and ID checking all together. Then if you put your pin in your wallet and someone stole it all, you'd only have yourself to blame :P

By Marcia @ 12/03/08 10:58:53 PMreport abuse

credit card signature

I work for the U.S. Postal Service as a retail associate, and I had a customer tell me that Clark Howard said on his show that you should never sign your credit card. Well the U.S. Postal Service policy is that we cannot accept a credit card that does not have a signature, what we are told to do is to match the signature on the Drivers Liscence with the signature on the back of the credit card. Also every credit card says on the back that the card is not valid unless signed, plus it says Authorized signature. We do not require this on debit cards. So next time your in your local Post Office ask them about their credit card signature policy.

By Waldemar Borrero @ 10/07/08 08:40:25 PMreport abuse

No signature

VISA/Mastercard agreements permit merchants to not require a signature if under a certain amount (usually $25), if they sign up for that program. The fee they are charged is different, but it speeds up transactions at the point of purchase, so many large retailers concerned about speed of service are moving that way. They pay a slightly higher fee because VISA/Mastercard accept a higher risk, but most credit card fraud is usually in large dollar purchases, not the small ones. When charged a fee for using a credit card, you can report it (must provide copy of sales slip), and get the fee credited back to your account.

By David @ 10/04/08 11:38:01 AMreport abuse

RFID

Chip and Pin is coming to Canada for credit and debit cards

By IDID @ 09/05/08 06:26:51 PMreport abuse

A chip and pin is good, so is a digital watermark, but c.c. companies want to go with RFID - which can be easily cloned

By Cheapo Groovo @ 08/13/08 05:42:37 PMreport abuse

merchant required ID

where a merchant requires ID, try having them call MC concerning the issue. in my experience the MC employee will not only lack knowledge of this policy but will back up the merchant

By deadbeat dad @ 08/12/08 10:13:21 PMreport abuse

ID checks, minimum purchase rules a no-no with credit cards

i've had the post office require a minimum of a $1.00 purchase. i have also had wal-mart ask for id when my purchase was over $100.00.

By charlotte @ 08/12/08 06:58:55 PMreport abuse

Gas savings

I use a Walmart credit card to purchase gas at Walmart which gets me another $.03 a gal off the posted price. they are generally the cheapest gas anyway, plus I get 1% cash back on all purchases. those who don't want the credit card can get a reloadable card at the store which still gets you the $.03 off at the pump. hope this saves people money

By Jack Barrett @ 08/12/08 03:42:59 PMreport abuse

id checks

Home Depot requires this for credit card purchases.

By red @ 08/12/08 12:53:31 PMreport abuse

Credit Cards & ID Checks

I have written on the back of all my cards "ID Required" and they seldom even look. I want them to identify me for my protection.

By Sue Powell @ 08/12/08 12:38:48 PMreport abuse

Credit Cards & ID checks

I think the worst thing is that some places don't require even a signature if the purchase is under a certain amount. Home Depot and Walgreens are the worse offenders

By mary @ 08/12/08 08:02:04 AMreport abuse

ID Checks

I disagree with Clark. If checking ID is for my protection, I should have a choice to be protected or not. The fees we pay for using credit cards (interest, etc.) are not only for the use of the money. The fee is also for the convenience of using the card. By requiring ID the merchant is taking away some of the convenience.

By PJ @ 08/12/08 05:16:42 AMreport abuse

Chargeback

Buy extra merchandise and then dispute the charge with your credit card company citing the merchant's minimum purchase requirement. The merchant is extorting money from the customer.

By Enoch Drebber @ 08/12/08 12:39:24 AMreport abuse

credit card

I read about 10 years ago in a paper in Ca. the small news clip said" retail places could not charge a higher price for their product if a customer used their card over cash." Gas stations are the biggest breaker of this Law? Or is there no law? Or only Visa/MasterCard rule? How can one in force it? This is in Ca.

By Raymond @ 08/11/08 09:30:38 PMreport abuse

They should require, not forbid, ID checks!

By MC @ 08/11/08 05:13:27 PMreport abuse

Speedway / SuperAmerica

Speedway has started requiring holders of their Chase Speedway Mastercard to enter their zip code when paying at the pump. This is very annoying and may be a violation. I have complained to them, to no avail. I have now submitted a claim to MasterCard. We'll see what happens.

By Pete @ 08/11/08 04:52:15 PMreport abuse

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Aug 11, 2008 -- ID checks, minimum purchase rules a no-no with credit cards

What others are saying