Should I Sign the Back of My Credit Card?

Photo: Unsplash

Signing the back of your credit card takes its root as a security measure that helps to prevent unauthorized use of the card. Merchants could ask for a signature on the back of the card as a way to verify that you are the legitimate cardholder. This way, they can compare the signature on the card with the one on the receipt.

This is, in theory, how it should work… But nowadays, merchants almost never check signatures, and for many transactions, signing a receipt is not even required (if a purchase amount is below a certain threshold).

Today, having a signature on the back of the card is less important from a security standpoint - almost all credit cards are authenticated electronically, while card issuers have additionally implemented sophisticated anti-fraud algorithms that track every single transaction.

Yet the question is still relevant: should you sign your credit card?

Should I sign my credit card?

As of a few years ago, all major card payment networks - Visa, Mastercard, Discover, and American Express - have stopped requiring signatures for credit and debit card purchases.

It is widely acknowledged now that the security provided by features like EMV chips surpasses the security offered by signatures.

If your card issuer doesn’t mandate you to sign, your credit card may not even have a signature box on the card at all. But if you do have a signature box on the back, it does not automatically imply your signature is required. The best option to find out is to read your credit card agreement and supporting documents.

While security is not a primary concern anymore, it still might be a good idea to sign your credit card. To indicate the card is active and valid, card issuers may still require a signature on the back.

Signing a card means you have accepted the terms and conditions of the credit card agreement. And technically, merchants may decline your credit card if they deem it to be inactive or invalid.

Where should I sign my credit card?

You should sign your credit card on a white or grey signature box on the back of the credit card. Often, you could find a security number located on the right side of it.

Take steps to protect yourself against fraud

The latest anti-fraud techniques and built-in security features made a big advance in protecting credit card customers from fraud, yet it is always a good idea to stay vigilant and take basic security measures yourself.

• Don’t share your credit cards with others. When you need to grant a friend or family member access to your account, most lenders allow you to add an authorized user who will receive their own credit card.

• Keep your credit card in a secure location at all times and be aware of its whereabouts.

• Retain your receipts for a period of a couple of months at least, and regularly review your credit card transactions online. Examine your credit statements at the close of the billing cycle.

• Don’t share your credit card information overthe phone if you are unsure about caller’s identity. In particular, avoid giving such information as credit card number, name on the card, account address, etc.

• When making a purchase online, make sure your browser communicates with the website through the HTTPS security protocol. This ensures data exchanged between a web browser and a website is encrypted and secure.

• To protect your identity and financial well-being, consider regularly utilizing credit monitoring services, whether free or paid.