You may have noticed fewer merchants are asking for your signature when you pay by credit card.
It’s the end of an era, but it’s one that few people seem to notice. Beginning this month, signatures will no longer be required when using a security chip-enabled credit card. Many merchants and the credit card industry say signatures increased waiting time at the cash register and did little to prevent unauthorized transactions.
Robert Barba, a Bankrate.com Analyst, says, “It is somewhat of a tradition, right? I mean, we think we assign value to the signature. We think there are some sort of legitimacy to signing a receipt. The reality is, it’s just not a robust form of security.”
Unusual spending patterns and transaction locations are red flags, but some retailers say more needs to be done to prevent fraud and want US credit cards, much like those in Europe to require the use of a pin.
Some experts say pin security is outdated and that fingerprints and facial recognition are the next best way to prevent credit card fraud.