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Good bye signing for credit card purchases

Discussion in 'Money Management' started by cmilgrom, 5th May, 2008.

  1. cmilgrom

    cmilgrom New Member

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    No longer will I be embarrassed when paying by credit. I have the worst signature in the world. Now I can just enter my PIN number. But what seems stupid is that it's only optional to use your PIN. Why don't they make this mandatory to improve Credit Card security or is this because too many baby boomers with credit cards can't remember more than one pin number or email password??? Credit card payment system to change from June.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Possibly not mandatory because not all systems are capable of doing PIN-only transactions yet, and there is the added complication of how do you handle offline-vouchers for when your communications link is not available.
     
  3. cmilgrom

    cmilgrom New Member

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    Hmmm. It's also supposed to save 5-10 seconds at the check-out. As you'd punch in your PIN while swiping.
     
  4. AsxBroker

    AsxBroker Well-Known Member

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    Hi CMilgrom,

    I do think it is a bit silly as well.
    I know why they are doing it, it's an additional layer of security. A bit like when you purchase something over the phone or internet and they ask you for your CCV number (Credit Card Verification) the 3 digits on the back of your card . This proves that the physical card is present as they aren't swiping your card through a machine.

    Similarly, you putting in a PIN verifies that the card is being used by a legitimate user of the card, as opposed to signing Donald Duck (whether the salesperson checks the signature is an issue for the shop) and if you ever decide to dispute a transaction, they pull out the signed original and you can say (obviously) your name isn't Donald Duck (unless your name is actually Mr Donald Duck) and that the signature doesn't match what it is the back of your credit card, hence the card has been used for an unauthorised transaction and you want your money back (you never got that 50" LCD TV with the 7.1 surround sound system did you???).

    Back to the point, basically it adds another layer of security to crack down on unauthorised transaction which in the end cuts down costs for Visa/MasterCard/Amex/Diners which usually increases their profits (you can buy shares in Visa or Amex (both in the US), not sure about MasterCard and Diners though).

    Cheers,

    Dan

    PS This is not advice to buy shares in any bank or credit card processing company. Before making an investment decision speak to your FPA registered Financial Planner or licensed stockbroker.
     
  5. cmilgrom

    cmilgrom New Member

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    Can you tell I've been a victim of credit card fraud before?
     
  6. nitro-nige

    nitro-nige Well-Known Member

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    The PIN system seems to work okay in New Zealand for credit card purchases.
    Has done for quite a few years.
    I sometimes wonder how my signature passes sometimes, but I guess the must have a degree of leanancy.
     
  7. Rod_WA

    Rod_WA Well-Known Member

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    Unfortunately every single online CC usage demands the CCV, so anybody who works in accounts dept at the phone, power, water, insurance company etc now knows my CCV and has my name and CC number and expiry.

    Also the dude at the takeaway or retail shop that swiped my card (even while I was watching him to make sure he didn't swipe it through a second reader) made a mental note of the CCV and scribbled it down with my CC details after I left the store.

    The CCV is a bit of a joke, it goes no way to proving I have the card.

    Glad I got that off my chest.
     
  8. AsxBroker

    AsxBroker Well-Known Member

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    Hi Rod,

    I agree with you, the whole credit card system is built on trust.
    If no one had trust in the system, none of us would be using credit cards. If you want to upset the kid in the Pizza place, remember what your CCV is and then scratch it off ;) I'd be watching the pizza guy with eagle eyes personally. Though saying that, when they swipe it in front of you it's not so bad, it's restaurants that take the card from your table, out the back where you can't see what's happening.

    If you don't check your card online (through your bank's website) you get a heartattack when you get the monthly statement and realise the 8 seater jacuzzi never did make it back to your house...

    Cheers,

    Dan
     
  9. Billv

    Billv Getting there

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    I believe it's a good thing
     
  10. Jacque

    Jacque Team InvestEd

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    Signatures hardly get checked these days anyway so I think an extra security feature like a PIN is a great idea. Even better would be photo ID cards, which have been mentioned before.