Buzz
If you've used your credit card recently, you may have noticed that there's no longer a need to spend those extra 10 seconds scribbling a barely readable signature on your receipt.
Starting this month, major credit card companies such as Visa, American Express, Mastercard, and Discover will no longer require a signature for purchases.
This change has been in the works since the introduction of EMV chip cards, though it's taken time to reach this point. CreditCards.com points out that the U.S. lags behind many countries in adopting this payment method. The move aims to streamline and speed up the checkout experience.
This also reflects a shift in how fraud is managed—requiring signatures is no longer the most effective defense. “Our fraud capabilities have advanced so that signatures are no longer necessary,” said Jaromir Divilek, American Express’s Executive Vice President of Global Network Business, in a press release.
“It’s important to note how minimal the protection provided by signatures actually was. How often did the merchant really verify the signature to ensure it matched?” asked Robert Harrow, a credit card expert at ValuePenguin, in an interview with Mic. “These chips are quite sophisticated, encrypted, and make credit cards much harder to be skimmed by credit card skimmers.”
The global rise of contactless payment systems (including Apple Pay) is also contributing to this shift.
Here’s what to remember moving forward.
New Scams Are Likely Coming
Scammers are resourceful, and sooner or later, they’ll figure out how to bypass the new security features.
According to CreditCards.com, one method of fraud is called “shimming,” where scammers secretly insert a shimmer—a thin, card-sized shim containing a microchip and flash storage—into the ‘dip and wait’ slot. This device can collect the EMV information from your credit or debit card.
To protect yourself, use the contactless tap-and-go feature instead of swiping or inserting your card. Alternatively, consider using Apple Pay or Samsung Pay, which offer superior security compared to other payment methods.
Additionally, whenever possible, use a teller rather than an ATM, and “avoid completing a transaction if your card faces resistance when being inserted.” This could signal a compromised machine.
Opt for Credit Over Debit
If you can pay off your balance each month, consider using credit instead of debit for its stronger fraud protections. With credit, the money isn't deducted until you pay your bill, giving you more time to report any fraudulent charges. In contrast, with a debit card, it can take longer to recover funds once they’ve been spent.
This includes linking a credit card to your virtual wallet instead of a debit card.
Also, set up text alerts and notifications for when your cards are used. While EMV cards are more secure than older cards and signatures, it's still important to stay proactive about your financial security.
