In these turbulent financial times, identity theft is rampant, and credit card fraud is a popular way for identity thieves to wreak havoc. Though many don’t realize it, credit card companies do not require consumers show their IDs when using a credit card to make a purchase. In fact, most specifically forbid retailers from asking for ID in their merchant agreements. There are two primary schools of thought on requiring IDs for credit card transactions: One is that requiring IDs helps prevent identity theft, while the other is that it can actually lead to identity theft.
Those who support the requirement of identification feel that it will help protect the card holder from identity theft. If the credit card falls into the wrong hands, the culprit could be caught more quickly if the cashier asks for their ID and sees that it does not match the name and other information on the credit card.
Secure Cards
While all credit card issuers have respectable policies for protecting their customers, Citibank and American Express are standouts. Be sure to check our Citi and Amex credit card deals section.
On the other hand, some believe that the more frequently IDs are used in public, the greater chance they have of being exposed to thieves. A card holder does not need to lose a credit card or ID for their information to be stolen. During a transaction, nearby thieves can quickly record information from IDs, including names, addresses and dates of birth, all of which can be used to steal an identity without the card holder’s realization.
Companies may choose to ask consumers for their identification when they use a credit card, but it is not essential for the transaction to be completed. Credit card signatures (i.e., the signature on the back of a credit card) are the preferred means of verification for most credit card companies as they provide decent protection against all but the best of forgers. Signatures are always required on credit cards.
The differences of opinion on requiring IDs are likely to continue. In the meantime, some retailers will request IDs from their customers and some consumers will encourage retailers to ask for their ID by writing “ask for ID” or “see ID” next to their signature.
I have encountered this issue multiple times in the past six months in relation to my AmEx. Several times the issue was not that I was unwilling to provide identification, I really didn’t have it with me. I contacted American Express today and was told that the merchant can set their own policies regarding identification requests and are not even obliged to call AmEx to verify the card if I were to request that the merchant do so.
In light of this response from AmEx, it may be best to change your wording from “credit card companies” to “some credit card companies.”
Comment by Monica — December 3, 2009 @ 6:46 am
No, not in reality. I know from personal experience. I have called Visa several times because Dollar Tree won’t process credit card transactions without ID. The only result of weeks of effort was a generic letter from Visa stating that I should contact the credit card issuer. I was actually directed to that bank previously, and of course, they said the issue was Visa’s,
Comment by Gerry — January 26, 2010 @ 6:02 pm