How effective are the electronic signature pads for credit card transactions? I used to try and sign my name like I would with a pen/paper but it never looked even close to my real signature. Now I just doodle a scratch to save time as I make my way through the checkstand with a baby in one hand and my cart/wallet/credit card in another. No one has ever asked me to match the back of my card with the doodle.
No doubt it is more efficient than managing little paper receipt records, but at some point would just punching the ‘YES, this is the correct amount’ on the keypad be adequate? I can’t see how my doodles make me any safer from credit card fraud.
Can’t they make a signature pad that would allow writing more like pen to paper? Or is it just me who can’t write properly on these things?
Actually, though they’re not perfect, the signature pads are close enough. No two signatures by the same person are identical, and the difference caused by the pad is probably not enough to invalidate the transaction.
I have often wondered this myself. Some signature pads work so badly that it’s impossible to write anything legible no matter how hard one tries. They are improving, though - some of the newer pads work pretty well.
BTW, the signature is to protect the seller as much as the buyer. If the buyer disputes a charge, the seller can use the signature to prove that the buyer agreed to the charge at the time (assuming, of course, that the signature matches the one on the card).
Here’s a follow-up then. When I use those signature pads, nobody ever asks me for the card to check the signature. As has been mentioned on this forum many times, the association agreements generally require the merchant to make that check as a condition of avoiding liability for fraud.
What is the merchant’s libability if the customer signs a pad and the clerk never even sees it?
In my experience it’s always been unusual for a seller to check the signature, even in those ancient times before electronic signature pads. My guess is that credit card fraud happens seldom enough that it usually isn’t worth their time to check.
Some big businesses (such as major grocery store chains) have stopped requiring a signature for small purchases (e.g. under $25).
I never sign them. I just draw a line. I guess it’s just the rebel in me that doesn’t want to give any merchant an electronic copy of my signature.
Or maybe it’s because of the story about a nationwide electronics store that used to connect their cash registers and signature boxes via wireless to their central servers. As the story goes, someone sat outside of one of their stores with a laptop and a homemade antenna, just to capture card details and electronic signatures.
Some guy did his own experiment on how far he could go with his signature before it was refused. Evidently, the limit was a drawing of genitalia. Link here.
Thank you Patch and TroutMan for your links. I had no idea the electronic signature pad was such a joke. I now can feel more confident signing with my doodle knowing that the whole thing is stupid anyways. Basically, it seems if someone steals your card you’re up the creek unless you can cancel it quick enough.
I assume it is just some legal red tape thing for the stores to say they tried to get a signature when things go wrong. Otherwise, why would they even pay for the equipment to set up such a farce.
It’s usually going to be the store that’s up the creek (or the credit card company).
A friend was recently the victim of identity/credit card theft. Among many other problems, the thief had purchased an expensive ($1000) product online from a large retailer. My friend found that the thief had his credit card number but not the three-digit security code from the back, and had just entered three random numbers. When my friend asked the store rep why the order still went through, the rep admitted that they collect the security code but don’t actually use it for verification. They had found they lost more sales due to people who couldn’t figure out the right code than they lost due to fraud.
Most retailers have probably also made the same calculation (consciously or not) about lost sales due to difficulty in comparing signatures.
I have a hard enough time writing my signature on paper (#&^%&%ing cursive, I hate it!) but on those electronic doohickies, it comes out so much worse. I’ve never signed anything weird on purpose like some of these linked pranksters have done, but sometimes it comes out so wrong it bugs me. I don’t care so much if it’s useful or not for the credit company or store or whoever, I just don’t like having my name come out as that mess.
I’ve given up trying to write my name on those, just the initial and a trailing scribble for my first and last name. That said, often it’s just the display that’s bad. The cashier at the local Home Depot (or maybe Lowes), at least, get’s an image on their cash register. I stopped signing with a smiley face, once I learned that.
Signatures arent there to protect you, theyre there to protect the retailer. For instance, if you claim that your card was used without your permission, the retailer can bring up the signature and say that you signed for the purchase. This gives them leverage when the credit card company attempts arbitration.
Places like starbucks dont even bother because if someone contests a 5 dollar latte, they really dont care and will just accept the loss.
Between the awkward angle, and no flat place to rest the heel of my hand, the result looks like a drunken scrawl where the writer passed out about halfway through. I don’t play games with it, but I’ve long since stoppped trying to acheive anything which looks anything like my sig or anyone else’s. It’s just a random squiggle really. And no two of mine look anything alike.
From what I see shoulder surfing either the patron ahead of me or the cashier, I’m about typical.