No I.D. required for credit card transactions?
“Can a store require an I.D. if I’m paying with a credit card?”
Tell this to your friend… they won’t believe you. Tell this to your mom… she won’t believe you. Tell this to a store… they definitely won’t believe you. But what I’m about to tell you… believe it…
You never need an I.D. to use your credit card!
Yes, I know that sounds crazy in an age of rampant identity theft and fraud, but it’s true. A merchant is not allowed to require your I.D. for a credit card transaction. You’re signature is all that is needed. Whether you’re buying Starbucks or a shopping spree on Rodeo Drive – no I.D. required!
Don’t believe me? I Know, most stores would never believe me. I bet the police wouldn’t buy it either. But I’ll prove it. Let’s start with the world’s most popular credit card… Visa. Below is an excerpt from their merchant rules:
“Although Visa Rules do not preclude merchants from asking for cardholder ID, merchants cannot make an ID a condition of acceptance. Therefore, merchants cannot refuse to complete a purchase transaction because a cardholder refuses to provide ID. Visa believes merchants should not ask for ID as part of their regular card acceptance procedures.”
…and if you think I’m lying, you can view the official document here:
http://usa.visa.com/download/merchants/rules_for_visa_merchants.pdf
Not only can a store not require a drivers license or other I.D., but Visa actually discourages them for asking for it! MasterCard also has an equivalent policy, which can be found here if you still don’t believe me:
http://www.mastercard.com/us/wce/PDF/MERC-Entire_Manual.pdf
American Express and Discover both have similar policies, and not only prohibit I.D. from being required, but also strongly discourage it.
Often when people hear of this, they are either delighted or discouraged. I’ll address the later, first. By federal law, you can only be held liable for up to $50 of fraudulent credit card charges. That was enacted decades ago, and today, I have never heard of any credit card company, even the scummy ones, enforcing the $50 deductible. Simply put, you’re not responsble for charges. So before you blow your stack, remember it’s not your money that’s liable!
Now that brings us to the question “If a store can’t ask me for I.D. to use a credit card, wouldn’t that hurt the credit card companies?” Well theoretically, yes, they take the liability. But with modern automatic fraud detection techniques, such as unusual spending patterns or use of card outside of your normal areas, the crime is usually caught (as in new charges prevented) early on, even if the consumer doesn’t notice them.
Credit card companies want their products to be as user-friendly as possible, and they know requiring I.D. isn’t exactly user-friendly. Therefore they’ve concluded they’d rather take the risk with their money.
Personally, I am glad merchants can’t require an I.D. for a purchase. There’s been countless times I don’t have an I.D. on me. Also I think requiring an I.D. for smaller purposes is too much of a hassle anyway. Plus let’s admit it, everyone nowadays has Photoshop and photo printers that can crank out a fake drivers license that would suffice anyway. In reality, requiring an I.D. is no foolproof way to prevent fraud at all. Criminals will simply turn to different avenues to use the stolen cards instead, such as on the internet.
Next time a store clerk asks for your I.D., you may want to point out the agreement they have with the credit card associations. If that doesn’t work, and you really feel wronged, you can file a complaint against them:
Visa: 1.800.VISA.911
MasterCard: 1-800.300.3069
So next time someone asks you “Do I need an I.D. to use a credit card?” you can tell them… no!
Why did Lindsay put that stupid smilely face on such a pretty credit card?
This is an interesting article, your a very good writer,keep it up.
I am always looking for good relevant information and latest news about Visa Credit Card . Just found your blog, thx for the info!
More people need to be aware of this and stand by their rights and refuse to show an ID. It is far more dangerous to give your home address, and birthday to every minimum wage clerk that requests it.
CREDIT CARD SIGNATURE IS ALL THE ID NEEDED
When you pay for merchandise with a Visa card, MasterCard, or American Express any store that accepts these cards should accept yours too, no questions asked. It’s part of the deal that merchants agree to when they become participating members.
They must check your signature and the card – electronically or by telephone – to be sure it’s valid. Once the answer comes up yes, they can go ahead and charge. They can’t ask you for any further identification – not a license plate number, Social Security number, proof of address, phone number or photo ID.
Your personal ID isn’t needed because Visa, MasterCard, and American Express all guarantee payment on cards that have been properly checked. If the issuer mistakenly authorizes a sale on a bad card, it should make good. MasterCard says that merchants receive instant settlement. The contract MasterCard merchants sign specifically prevents them from asking for personal ID.
Unfortunately, not all merchants play by the rules. Some, apparently, haven’t read them.
WHAT YOU CAN DO
MasterCard wants to hear about merchants who break their rules. Send the name and address and an account of what happened to MasterCard WorldWide 2000 Purchase St. Purchase, NY 10577 or call 1-800-300-3069. The merchant’s bank will get a stiff letter, ordering it to investigate and bring the offending store into line – or pay a $2,000 fine. You may also report violations online:
http://www.mastercard.com/us/personal/en/contactus/merchantviolations.html
Visa enforces the same rules as MasterCard. “When we hear about a violation, we ask the bank that signed the merchant to get together with the merchant and see that the practice is stopped,” Visa representative states. To report a merchant, send a letter to the bank that that issued your Visa card or call 1-800-VISA-911.
American Express also prohibits merchants from asking for IDs. “All a merchant is supposed to do is take an imprint, make sure the signature matches and swipe the card through the terminal, to get authorization.”
Our credit card number contacted us about the bad charges and never said anything about further action on our part. When the charges appeared on my statement, everyone from the bank to MC to the card services company said that I would have to file a police report, fill out two forms and get them notarized to start the process of getting the charges removed.
So I wish Walmart and several other chain stores had asked for ID.
I just gave my ID to get a $3 transaction processed on my Visa card. No more. Now, if any merchant tries again, I’ll tell them ID can’t be required. If, as I suspect, they refuse to accept my card, now I know how to report them. I relish them getting hammered by Visa!
Mastercard pdf link is also bad
I found the correct URL of the Visa document
http://usa.visa.com/download/merchants/rules_for_visa_merchants.pdf
Gerry-
Thanks for posting the updated link for Visa. I changed it in the blogpost.
Thanks again,
C.C. Guru
Obviously it is a major security and identity theft risk, extreme invasion of privacy, and a no-brainer to keep your ID to yourself. No reasonable adult would hand over their ID to some violating cashier on demand. The most important thing is making sure it never happens again, so if any violating merchant should ever pop-up in your community, make sure they are eliminated/brought back into line immediately – 1-800-VISA-911.
Never show ID with credit cards.
No ID required with credit cards. Merchants cannot require ID.
If a merchant tries to require ID, immediately call 1-800-VISA-911 to ensure they never do again.
VISA: 1-800-VISA-911
MasterCard: 1-800-300-3069
Also easily report merchant violations online:
http://www.mastercard.com/us/personal/en/contactus/merchantviolations.html
Check the box that says “Merchant required ID”
Make sure your community is 100% violation-free.
I was forced to show ID today to use a Visa (after the lady in front of me was denied her purchase because she didn’t have ID). I would have fought the guy, but I was in a hurry and needed my purchase.
I’m on hold with Visa right now, and the woman seemed to think it was allowed. I had to read off the document to her before she’d allow a complaint.
To report, simply call 1-800-VISA-911, press zero twice, and ask to file an “incident report” regarding a merchant violation/merchant who required ID. Crooked merchants shape-up quickly to avoid suspension. Make sure your community is 100% violation-free.
I’ve gotten a couple merchants shut-off from accepting credit cards over repeat violations of this issue (they usually change their practice within a few hours of being shut-off; it really gets their attention).
My clients are so stupid they probably can’t read the document anyway. They’d hand over their own mothers if it would get them their purchase faster. Absolute sheep. Of course, they have nothing worth stealing anyway.
Does anyone have an easy way to report AMEX violations on the web? I hate to sit on hold to gripe that they required ID to complete the transaction.
This is not factually correct information above – it is not the credit card cos that are liable for fraudulent use of credit cards. The merchants take the loss. The cc co makes MORE $$ when a credit card charge back is filed by the card holder via a $15-$25 fee they charge the merchant.
So cc cos don’t care that not requiring id makes it easier for people to use stolen credit cards – in fact they like it. More $$ for them.
And to those who want to insist that the merchants around them all follow this policy – you know that this just makes it easier for credit card thieves. They will be declining to show id when they use their stolen card. Sadly, it is card thieves who stand to benefit the most from a policy like this.
You all do realize too that the chances that NOT showing your id to a cashier is going to protect yourself from id theft is slim to none? That is NOT how id theft commonly happens.
If you’re want to protect yourself, get a paper shredder and get your name taken off the lists for receiving pre-approved credit offers. This is likely to make a difference. Cashiers memorizing addresses off ids that are shown to them is an incredibly rare way for id theft to happen. Stealing your pre-approved card offer from your mail and going through your garbage ARE the most common ways id theft happens.
Use your heads people!
Most credit card fraud is perpetrated by unscrupulous sales personnel. It’s much riskier for people to show their ID, which has personal information, for every credit card transaction than the risk for the more limited instances of unauthorized credit card use. Do you think maybe that the credit card companies have thought about the best procedures for credit card use?
My Amex merchant’s agreement said that you were NOT to ask for ID for an authorized charge under penalty of having your acceptance privileges rescinded. If it was a bad charge and Amex authorized it, you’d never know, because the retailer always got paid.
Most consumers have zero liability when paying with a credit card, so the prevent fraud – for your own good BS is meaningless. As a consumer using a credit card I’m more worried about the cashier memorizing my driver’s license and perpetuating some sort of fraud than I am about some one stealing my card and using it with out my knowledge. Merchants agree to the terms. If they don’t like the terms or are concerned about their own personal liability they shouldn’t accept credit cards. Signing the card and refusing to show ID is the best way to protect you from fraud.