Cash is apparently not what it once was … Nick Cardona of Boss 60 has this story.
The major credit card companies Mastercard, Visa, American Express and Discover eliminate the need for buyers to sign receipts for credit and debit sales from April 14th. 19659008] This means that most US or Canadian retailers can decide whether they need signatures or not. In two weeks, the credit card companies will collectively end the customers' signing requirements.
Mastercard was the first major credit card announcing signing plans. Some research has shown that "retailers and consumers want to streamline the payment process, and that a majority of people think it's easier to pay and the cashier moves faster if they do not sign up to buy," said Linda Kirkpatrick, executive vice MasterCard US Market Development Division President
Currently, customers only need to sign more than $ 50 in MasterCard purchases, so more than 80% of Mastercard's transactions in North America already require a signature, says Kirkpatrick
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More: 6 tricks to credit card shoo They kill faster  "You can not have one. I've made sure that you do not have to sign when you buy a cup of coffee or a train ticket, but you have to sign sneakers when you buy a new pair," she said. "With the advent of new security, we can create a more consistent shopping experience that eliminates the signature."
The encryption within the EMV chip, which was introduced three years ago, has helped provide robust security to other steps taken by credit card companies and the underlying payment networks in which banks participate.
Within weeks of Mastercard's announced plans last year, Discover, American Express, and Visa were added to end the request for a signature. Visa will require traders to have either an EMV chip or contactless chip-capable readers to avoid signatures.
Visa has not required signatures for most merchants for sales below $ 25 and for many sales below $ 50. Similarly, American Express cleared signatures for sales below $ 50 in the US last year, the company said in December. "Our fraud skills are so advanced that they no longer require signatures to combat fraud," said Jaromir Divilek, executive vice president of global network business for American Express, in a blog post at the time.
Signature has been abolished This means that the checkout process will be more efficient not only for buyers but also for retailers, says Laura Townsend, Senior Vice President of Operations, Merchant Advisory Group.
In payment networks, merchants need to collect signatures to refute possible frauds: "Our fraud capabilities are so advanced that they no longer require fraud-proofing signatures," said Molly Faust, vice president of public affairs for global dealer and network services at American Express. Amex, which globally eliminates signatures, "uses sophisticated machine learning algorithms that allow more accurate detection of fraud and minimize the disruption of cardmembers' true spending"
Not all traders will sign overnight, but most of all I reject I'll move towards that, says Townsend. "For some traders it's almost like turning a switch, other traders will need to do more development than that," she said.
Other outlets such as rental car companies and restaurants may still require signatures. "If you think of a seated restaurant, they can go ahead and give the receipt to the customer anyway, to get a tip, but from an operational point of view, they probably will not change." Townsend said.
As credit card companies continue to use high-tech payment solutions – such as contactless payment and biometric fingerprint and facial recognition – more buyers will not even have to put a card in a card reader to pay.
"We believe that multi-factor authentication is crucial and signature has never allowed," said Townsend. Whether it's a PIN or other biometrics where the industry needs to go. At least this is the first step that moves us in the right direction to a better, less fraud-prone system.
Follow Mike TODAY reporter Mike Snider on Twitter: @MikeSnider .
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