BestBuy No Longer Checking ID’s With Credit Card Purchases
July 20th, 2007
Written By: Adam Sussman
While at the Woodland Hills, CA BestBuy I made a purchase with my credit card. By habit I had my ID ready to show when checking out but the manager on shift told me that BestBuy and stores like them no longer are allowed to ask and check peoples ID’s.
“So I can come in here and make a purchase on someone else’s credit and you have no idea if I stole it?”
The manager said it’s a new policy. “We are not allowed to ask people for ID’s anymore.”
I looked over at Becky, aka WebMoxy who happened to be shopping with me at the time and we were in disbelief. So we asked someone else in the store if that was really true. That person said if anyone in the store has the facts correct it was the manager we originally spoke with.
What is that all about?
July 20th, 2007 14:09
By law (don’t ask me to quote which law it is), you have never been allowed to ask for ID with credit card for payment unless it is for age verification or the card has a directive to request ID.
The hardcore privacy people have been filing lawsuits against companies who have been abusing it.
July 20th, 2007 15:14
Interesting… Here in Canada, I’ve never had to show ID to make a purchase with a credit card. Is that a common practice in the US?
July 24th, 2007 09:24
Yes, it is common practice in the U.S. and sometimes people write “see id” on the back of their credit cards just in case it’s stolen. It’s odd that people would have a problem with it since identity theft is a much larger problem and extremely tough to reverse should someone steal it and “go to town”.
Hmmm… our world is strange anymore…
August 3rd, 2007 03:14
The Visa and Mastercard merchant rules prohibit stores from requiring a photo ID with credit card transactions. The store is supposed to compare the signature on the back of the card to the signature the customer signs for the transaction. If the credit card has no signature on the back or says “see ID” the store is to require the customer to sign the card immediately and compare that signature with a photo ID. “See ID” is not a valid signature: http://usa.visa.com/merchants/risk_management/card_present.html
This is only common practice in select parts of the U.S., notably California, not nationwide.
Mastercard and Visa both welcome reports of merchants who require ID for signed credit card transactions. Click here for Mastercard’s online reporting system: http://www.mastercard.com/us/personal/en/contactus/merchantviolations.html
Visa you have to call in to 1-800-VISA-911 and tell them you want to file an incident report about a merchant to get the merchant in trouble.
August 3rd, 2007 06:24
Asking for ID may be common practice in some places, but that doesn’t change the fact that it is a violation of the terms of their merchant agreement with the CC companies.
Visa and Mastercard both specify in their merchant agreements that a merchant may not refuse a sale to a customer for failing to provide ID. This has been the rule for decades, though most people don;t know it, and some retailers violate it regularly.
The only time they are allowed to require ID is if they suspect fraud.
August 10th, 2007 09:18
Yes, you can walk into the store and buy something with somebody elses credit card. You can also buy something with your own credit card, and when the statement comes you, you can call your bank and tell them that you never bought this, and they will do a charge back and give you the money back.
October 12th, 2007 17:09
It’s not a law. It’s a contract that the merchant enters into with the credit card company if the merchant agrees to honor that credit card. Both Master Card and Visa explicitly stipulate that a merchant may not require supplemental ID to complete a credit card purchase. It’s very common in CA, where i recently relocated. I never ran into this practice in in NY. It’s like an urban legend here or something. I have atarted to report it every time and it seems like most stores have retrained their staff.
BTW, the problem showing ID is meant to address is credit card fraud, which is not to be confused with identity theft, which conceivably could result from showing your driver license. Also, showing your ID is dangerous because an unscrupulous could note your address and rob you, or if they have your address and note the security code on the card, they have your CC number and exp date and could use your card for online purchases.
If you have “see ID” on your card and not signed it is not a valid card. If someone then steals your unsigned card and puts a signature in, and then uses it, and the card is recovered, which it often is, you may very well be liable for the unauthorized purchases because you didn’t follow the rules.
October 20th, 2007 23:20
Speaking as a manager in a nationwide specialty retailer, every day, numerous times, people swipe their cards and then start to put them up immediately. We say, “I need to see the back of your card, please” (which is also the message they get after swiping-”Please hand card to cashier.” They whine about having to dig it back out, then they whine when we check their ID because most of their cards are NOT signed. These people have a false sense of security and worse, we the merchant get stuck when mr or mrs cardholder disputes the charges. It’s holiday season…I’m ready for the battle…but not happy about it.
October 22nd, 2007 11:33
Thank God these national chains are finally complying.
So when I refuse to show ID, usually I get attitude from the clerk. “We’re just trying to protect you.” I find this confusing and possibly misleading. Merchants can’t have an obligation to clientelle in this way, and only a fool would believe it.
I guess the question is: As consumers do we need this kind of protection from the merchant or the CC company?
I usually end up telling the merchant “It’s not my card, it belongs to Visa. Please call them if you have a problem.”
November 9th, 2007 14:28
No you cannot ask for ID as a condition of the sale.
MasterCard, specifically has these options on their Merchant Violations: http://www.mastercard.com/us/personal/en/contactus/merchantviolations.html
“The merchant/retailer required identification.”
Visa’s are pretty straight forward:
1. Check the card security features.
2. Swipe the stripe
3. Check for authorization response (approved, declined, etc)
4. Match the numbers
5. Request a signature
6. Compare the signature
Those are the steps when accepting a Visa card.
Your personal ID isn’t needed because Visa, MasterCard, and American Express all guarantee payment on cards that have been properly checked. If the issuer mistakenly authorizes a sale on a bad card, it should make good. MasterCard says that merchants receive instant settlement…The contract that MasterCard merchants sign specifically prevents them from asking for personal ID.
From: http://usa.visa.com/download/merchants/rules_for_visa_merchants.pdf
When should you ask a cardholder for an official government ID? 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. Laws in several states also make it illegal for merchants to write a cardholder’s personal information, such as an address or phone number, on a sales receipt.
Futhermore, you cannot write down any part of any information from the card, specifically the CVV number. You cannot record, store the CVV for longer than it takes the transaction to record and process, then it must be destroyed. Even further, it is not legal to write ’see ID’ on the card itself as a substitute for a signature.
Stores that require ID are violating regulations and should be reported to the agency. Best Buy recently stopped doing this due to lawsuits.
References:
http://www.wlindley.com/archives/28
http://usa.visa.com/download/merchants/rules_for_visa_merchants.pdf
http://www.mastercard.com/us/personal/en/contactus/merchantviolations.html
http://www.in.gov/dfi/education/pdfs/id.pdf
November 19th, 2007 13:18
While I dislike having to delay everyone in the line behind me. When the clerk tells me it is for my protection, or the manager tells them they must ask for ID, I explain that violates the card accepters agreement and explain that anyone with my permission may use the card so It doesn’t make a difference what I may be carring as ID. While the clerks usually take it as if I am making her job unpleasent I remind them that in the past bosses required their employees to ask for a social security number to write on a check. Which if the person was foolish enough to give their actual number were also being compromished because a store manager thought they had solved the stolen identity program, but actually enhancing it. I explained that I was responsible enough to report my card stolen so you would be alerted when it was read through the system.
December 13th, 2007 20:42
California law allows merchants to require photo ID However no information is allowed to be copied from this ID. Check state law before making blanket statements about what is and is not allowed
January 31st, 2008 21:06
If I understand the above posts and links correctly, although it is illegal to ask for an ID, a merchant IS supposed to compare the signature on the credit card and on the sales slip (step 6 of Visa’s rules)…yes?
If so, how does this figure into self check-outs? Two days ago, a thief stole my purse and bought a $756 computer with my credit card using Wal-Mart’s self check-out. Six minutes later, he came back to buy a PS3 from electronics, was asked to provide ID, said he would get it from the car, and never returned (did I mention I’m female, so the ID would not have matched?)
ID aside, the signature would not have matched when compared either. I don’t understand how a credit card can be used to self-check since there is no signature comparison. Wouldn’t this be in the best interest of the retailer, the credit issuer, and the consumer? Couldn’t one of the attendants that monitors the self-check be prompted to compare signatures for large purchases?
I welcome explanations from anyone who is knowledgeable on this topic because I’m having trouble finding what obligations Wal-Mart has for protecting consumers from fraudulent charges.
March 6th, 2008 02:00
Yea, I thought this don’t check for I.D. rule was strange too. I had recently gotten the job at Best Buy and heard this new law. Which out here in Arizona is a bad rule since I was told that Arizona is one of the top identity theft/ fraud states. I heard that one reason is that credit card companies pride themselves so much on their anti-fraud protection thing that you as a consumer shouldn’t have to worry about it. But thats just a rumor to why that I had heard of. Also, another rumor I heard was that people who think they are safe by writing “SEE I.D.” on the back of their cards (beside the fact that stores don’t look for it) is that not putting your signature on the back means you do not agree to the terms of the card and supposedly can’t be used. But oh well huh. I guess you should also know what and where your credit card has been used. PAY ATTENTION!
March 13th, 2008 19:07
Hi there. Stumbled upon this… Its actually my fault (?) that Best BUy has trained their employees this way. I was shopping at the Best Buy on LaBrea in Hollywood, when i was asked for my ID for my Visa purchase. I informed the clerk that my card was signed, and she was welcome to make a Code 10 call if she felt that the charge was fraudulent, and Visa can make the decision if they would honor the payment by phone. She refused and I asked for a manager. The manager told me that checking IDs was a store policy. I pointed to the HUGE sign above all the registers that show all of the store policies, including returns, checks, etc., and noted that ID checks for credit cards are nowhere on there. He told me that he wanted my ID. I actually went back with the full merchant agreement from Visa and showed him where Visa instructs that merchants cannot ask for ID as a requirement for acceptance of the card. He still wouldn’t budge, and I paid with my ATM card. He watched me put in my PIN number, which was the last straw. I emailed Best Buy’s Executive Vice President Shari Lombard (thanks, Google), who told me that she has ordered the immediate retraining of all Best Buy employees for credit card purchases.
March 13th, 2008 21:25
Eric, that is interesting!
May 6th, 2008 22:57
My purse was stolen last week and within one hour, my two Citibank credit cards were used at Wal-Mart, QuikTrip and Dillard’s (total of about $2,000). Eventually, Citibank put an end to the shopping spree. Although the entire ordeal will be a hassle for me, I will not be required to pay Citibank for these fraudulent charges. However, my $100 purse was stolen (plus a $50 wallet, $350 camera, $100 memory card, and $200 worth of gift certificates). In addition, they busted out the window of our Avalon (another $200). I now have a different viewpoint regarding store clerks asking for my ID. Since thieves know they can use credit cards without any identification, “the system” has created an “open door” for the thieves. All they have to do is steal a purse/wallet and within one hour they can obtain thousands of dollars worth of merchandise. So, now when you park your car at a park or jogging trail, the likelihood of someone breaking in is much greater today than it was ten years ago. Stolen purses/wallets are so common place that the police can not keep up with all the files. It has taken me over 45 hours to track down the details (tracking were the cards were used, talking to the members of Loss Prevention at each store, requesting them to view their surveillance video, speaking with them about their findings, getting the different Loss Prevention specialist on conference calls so they could compare their stores video footage, requesting copies of the video to be burned on DVD for the police, obtaining copies of the sales receipts for the police, requesting copies of the actual signatures from the credit card companies, following-up with everyone involved, etc). That’s 45 hours already and the police still have to prepare the case, get it to the District Attorney, and the criminals must be charged & prosecuted. The police and the DA’s office are overwhelmed with their caseload (that’s why so many of these criminals get away with their crimes and continue on their rampage to find another victim). I think that the credit card companies need to change their policies. Right now, they want their credit cards to replace the cash. On the good side, the credit card system allows consumers to make hassle-free purchases (it’s extremely efficient). However, these same companies have created a nightmare for our country because they have created gold mine for all the thieves. It’s like an Easter egg hunt where a $2,000 (plus) jackpot is hidden inside almost every single egg. Steel a purse/wallet and any thief can easily win the jackpot! I think MasterCard and Visa should give their customers the option of requiring a Pin Number be used with their credit card. Then, the next time I use my card at Wal-Mart or Best Buy, the “system” would require me to provide Pin Number. What if the majority of the consumers did the same thing? Eventually, the thieves would realize that their purse/wallet snatching scheme isn’t worth it (most people carry very limited cash anymore so the inherent value of purse/wallet snatching is related to the credit cards). Keep in mind that the stores do not get charged, if they accept an unauthorized credit card (so they have very little incentive to ensure the charge is authorized). With the current policies by the powers at MasterCard and Visa, we are sitting ducks just waiting to become a statistic.