So I've read on this forum a few times that it's a policy for merchants to not require ID from cardholder when making a purchase using a Visa or MC. Anyone know the specific reason behind this? Just curious.
It's their policy not to REQUIRE the ID for purchase, but they can REQUEST ID. You just refuse, and they can't refuse to sell you the merchandise.
Merchant now has full name, address, dl#, credit card number, and date of birth.
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I don't know the specific answer, but I have a theory.
I do know that the policy goes back a long way... 30-40 years, maybe more. I suspect it was a relatively simpler time, cards themselves were relatively rare, ID theft wasn't non-existent but it was rare and unsophisticated, and the problem just wasn't a big deal. Fast forward to today, and all that stuff has become an issue. End result, they're kind of stuck with it because they've made such a big deal out of the perceived convenience all these years.
Back in the day, it wasn't really all that convenient to use a credit card, other than to delay paying the bill, and to a lesser extent not having to carry cash and risk getting mugged. Basically, they had to add little things to make it appear better and more different than it really was. Today, the arrival of online shopping alone would make it convenient enough. I believe that if credit cards were invented today, that ID would be required for in-person transactions.
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You're not having anything delivered. Do you think a private entity has any business knowing where you live to make a simple purchase over the counter?
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Merchants cannot require ID and should not ask for ID as part of their regular card acceptance procedures, so if you are ever asked for ID, immediately call 1-800-VISA-911 to ensure the practice is stopped at once. Make sure your community is 100% violation-free.
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 picture 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.
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 International, c/o Radio City Station, P. O. Box 1288, New York, NY 10101. 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.
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 issued your Visa card.
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."
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The OP didn't ask for current policy or right/wrong, they merely asked for historical perspective. If you don't know the answer, just say so.
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Continental just copies/pastes the same info over and over, no worries, I think his posts are expected in this area
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Continental just copies/pastes the same info over and over, no worries, I think his posts are expected in this area
Too much information is better than too little when you're starting out like a newbie like me.
ETA: I appreciate everyone's comments.
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Don't know a specific reason, but have heard some theories.
- if merchants only selectively ask for ID, there will be claims of discrimination made if blacks are asked more than whites, etc. - Visa/MC don't really want to have to deal with something like that.
- your billing address is used to verify on-line purchases - seeing it makes it easier for clerks to use the number fraudulently on-line
- showing ID compromises your privacy - some states still use SSNs as driver's License numbers
- Visa/MC want credit cards to be as easy to use as cash - so you're more likely to use them and get them more in merchant fees.
knowing that Visa/MC are like any other corporations, I believe that the answer is closer to the last