Signature or No Signature when you use a credit card?

That is the Question……

News Alert – April 2018 – Visa, MasterCard, American Express and Discover have said signatures are no longer need with credit card transactions … when using a chip card (EMV) on a chip card terminal at a merchant ( Business Location ).

EMV -Chip card has been around since October 2015… Adoption rate among businesses is only 50%-60% Nationwide and many businesses still do not have chip card due to using – Legacy Point of Sale Equipment and that equipment does not support Chip.

Will merchants be on board with not getting a signature…

Most merchants will still ask you to sign

Why ? Businesses we spoke to are always worried about chargebacks and worried about scams.

Systems will have to be updated at larger business to accommodate not getting the signature.

What position will your business take?

The Card Brands all have a different policy … which is holding people back…

The card companies are handling the change in different ways:

  • Visa has made it optional for North American cardholders to sign for transactions.
  • Mastercard will no longer require signatures in Canada or the United States.
  • Discover will no longer require cardholders to sign in the U.S., Canada, the Caribbean or Mexico.
  • American Express is the only company to eliminate the requirement for signatures worldwide.

While Fraud has decreased in the card present environment – it has increased in non card present, Internet, Gas Stations, Vending and other non attended solutions.

We are recommending that business owners use caution in implementing the no signature policy and clients who are doing large transactions, we are not recommending not getting a signature.