Why You Need to Sign the Back of Your Card

In a world where credit card fraud and scams are pretty common occurrences, people are adopting some of the own personal practices as added protection. One of the most popular methods of security credit cardholders are using these days is opting not to sign the back of the credit card. In theory it sounds like a good idea but you may actually be sabotaging your contract with the credit card company.

An Ineffective Security Measure

The purpose of people not signing their cards is used as a security measure. Essentially, cardholders don’t add their signature to the back of the card and instead write ‘SEE ID’. This is supposed to prompt cashiers to ask the cardholders for proper photo identification to confirm the right person is using the card. By checking identification, the cardholder can be more confident that criminals would not be able to use a stolen or lost credit card.

It can be an effective way for clerks to double-check the authenticity of the card user but will only work if the cashiers actually look at the back of the card like they are supposed to do. This is not the case at all retail locations. People are so used to swiping credit cards, there is often little double-checking going on. Some people will not even sign their cards at all with the same intent of having the clerk check for identification before processing the card. Either of these methods can cause trouble for the cardholder.

The Importance of Signing Your Card

It may seem logical to want to protect your credit card and your finances but the reality is not signing your credit card essentially invalidates the card itself. Besides the security measure of your signature on the card, the whole reason you sign your card is to validate and accept the terms and conditions of the card provider.

By not signing your credit card, you are leaving yourself open for your card being declined by astute cashiers. Retailers may not accept your unsigned credit card as a method of payment for your purchases which can be embarrassing when there is a long line of customers waiting behind you.

A credit card agreement is just like any other contract. You have terms and conditions you need to abide by and your signature is your acceptance of those terms and conditions. As soon as you receive a credit card in the mail, you should sign it right away using your name printed on the card. This validates your credit card for use. It is not wise to wait until you are making your first purchase because signing a card in the store may raise suspicions of fraudulent activity.

There are other ways you can protect yourself from credit card fraud. Checking your credit report regularly is one good way to detect fraud. You should also be reviewing your credit cards statements line by line to authenticate all listed purchases as your own. Any sign of fraudulent activity or unauthorized usage should be reported immediately to your credit card issuer. When you use your card in a store, supplement your driver’s license along with the card to help encourage store clerks to be more proactive about checking identification of all credit card users.