Can Merchants Require an ID for Credit Card Transactions?
March 17, 2008
As a followup to my earlier article about merchants being unable to require a minimum purchase for credit card transactions…
Did you know that merchants can’t require you to show an ID in order to complete a transaction?
According to a recent Q&A in the Baltimore Sun:
Although Visa rules do not preclude merchants from asking for cardholder ID, merchants cannot make an ID a condition of acceptance. Therefore, merchants cannot refuse to complete a purchase transaction because a cardholder refuses to provide ID. Visa believes merchants should not ask for ID as part of their regular card acceptance procedures.
As for MasterCard:
A merchant must not refuse to complete a MasterCard card transaction solely because a cardholder who has complied with the conditions for presentment of a card at the POI [point of interaction] refuses to provide additional identification information, except as specifically permitted or required by the Standards. A merchant may require additional identification from the cardholder if the information is required to complete the transaction, such as for shipping purposes.
Apparently, American Express and Discover have similar rules.
There are, however, some exceptions… For example, they can ask to see an ID if your card isn’t signed. And if you’re paying remotely, like over the phone or on the web, they can ask for identifying information such as your zip code (I’ve also seen on this on pay-at-the-pump transactions).
Of course, this doesn’t mean that all businesses follow the rules. If a merchant demands to see your identification, and then refuses you service if you fail to comply, your only real recourse contact the card company and provide them with the name of the business. Most card issuers will initiate an investigation and may even penalize the business for violating their merchant contract.
Posted in Credit Card Facts
March 18th, 2008 at 7:46 am
As a cashier, I can tell you two other times that I request ID, which I feel is are legitimate reasons…
1) The customer’s signature bears NO resemblance to what’s on the card.
2) The customer has WRITTEN “See ID” or “CID,” regardless of the presence of the signature.
I am also leaning towards asking for ID if there is a clear signature (not smudged or worn) that does not appear to contain letters. Checking ID’s adds valuable time to each transaction, so I may not implement this.
March 18th, 2008 at 12:26 pm
Every time I travel to Louisiana, I’m asked for ID when I use a credit card. I believe there could possibly be some sort of local law that requires merchants to check it.
March 18th, 2008 at 12:26 pm
I write “Request ID” in the signature block of all of my credit cards because I WANT merchants to verify my identity. Worth a moment of my time, having been identity-thefted twice already.
March 21st, 2008 at 8:22 pm
What about when the name on the credit card clearly doesn’t match the person, ie, a clearly gendered name being used by a person of the opposite gender? Or if the person is clearly too young (younger than 10 years old) to be using a credit card other than their parents’? These used to be issues when I worked at Pier 1 - women would frequently bring in their husbands’ credit cards, but you never know if it’s stolen, or even if it’s revenge shopping in a divorce.
March 22nd, 2008 at 2:27 pm
If the name clearly doesn’t match the person, the card can be rejected. I’m not sure of the legality of this, but as a cashier, I have taken the card and put it in a safe place until the owner came to claim it.