Over in this thread, Caldazar asked if credit cards are valid even if they are not signed on the back.
It reminded me of something I have always wondered. In my mind, credit card purchases come in two flavors: Swiped and Numbered.
In a Swiped Transaction, the merchant runs my card through the doohickey (or the old, click-clack carbon machine) then asks me to sign a receipt. In a Numbered Transaction, the number on the card is given to the mercant, and I sign nothing.
Why, if Numbered Transactions are valid, do the old-fashioned Swiped variety still exist? Why does the gas station make me sign a receipt inside if I can just run my card through (without a sig) at the pump? If Amazon.com trusts that the number I give them is mine (without a sig or other ID), why does Sears require a written signature?
It’s usually up to the merchant to decide whether they want a signature or not. The merchant is liable for credit charges from stolen cards, etc., so it’s up to them how much protection they want. For example, if someone steals your card and orders a computer from Dell with it, Dell ends up eating the cost of the computer (unless they catch the thief perhaps), not you or the credit card company. If a merchant has this happen too many times, they may even lose merchant status with Visa or Mastercard.
For that reason, many online and phone credit card orders are only accepted if the shipping address matches the billing address. Dell will even call the credit card holder back to confirm the order (using the phone number on file with the credit card, not the one you gave them during the order). This is probably even more secure than requiring a signature.
On the other hand, the most a gas station will lose is $30 or so, on average, with a stolen card, so they don’t even bother to get a signature for verification. It’s a little strange when a gas station with a pay-at-the-pump system (which doesn’t require a signature) does require a signature when you pay a cashier. I guess the rationale is:
You might be buying beer, groceries, etc. inside as well, so the potential risk is greater.
They might not be wired to instantly validate credit cards (especially if they’re using the "click-clack carbon machine- what IS that called?), even though the pumps themselves are.
You’ve already come inside, so you won’t mind spending just a little more time signing the receipt, so they have more protection against theft.
Actually, at most of the gas stations where I’ve gone inside to pay (the auto-swipers at the pump are expensive to install and I fill up at a couple of franchise stations where they have to buy the pumps, themselves), they will just swipe the card–EXCEPT, that I have a card that will expire next month and the electronic tape has worn out. When I use that card, they key in the number, then they carbon-roll the physical card to show that they had possession of it at the time of sale and staple the computer receipt together with the impressed sales slip.
“Swiped” usually refers to credit card transactions that are run through a swiper. The old imprinters are usually called “manual” transactions.
If you use a swiper, the merchant is charged less for the service (a percentage of the purchase price is paid to the credit card company; it might be 2.25% for a swiper and 2.75% for a manual transaction).
I see that there are usually two paper copies. You can pull out your copy on the bottom before signing it so that no one can see you signature if they find the receipt somewhere…so it comes out about the same as a non signature transaction.
I also beleive that for most online transaction you put in the zip code of the home address. Then you can ship to anywhere you want. I know amazon and dell do this. I live at school but all my bill go home. I use my zipcode to prove that is it me then i get all my merchantdise shipped to school.