Kip Tips
More on Showing ID When Paying With a Card
Here's why you should think twice about handing over identification when paying with a credit card -- and what to do if the merchant won't accept your card if you refuse to show ID.
By Cameron Huddleston, Contributing Editor, Kiplinger.com
February 22, 2010
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In my last column I wrote that merchants can’t refuse (in most cases) to accept your MasterCard or Visa if you refuse to show them identification. However, many merchants aren’t aware of this. In fact, some stores require sales clerks to ask customers for ID when they pay with a credit card.
So what do you do if your card is rejected because you didn’t want to hand over your driver’s license? “Raise a fuss if it’s something you believe in strongly as a consumer,” says Paul Stephens, director of policy and advocacy for Privacy Rights Clearinghouse, a consumer information and advocacy organization. Stephens says that whenever a sales clerk has refused to accept his card because he wouldn’t show ID, he asked to speak to a manager -- and his card was accepted.
He suggests carrying a copy of Visa or MasterCard’s merchant rules with you. Print out page 29 of Visa’s rules for merchants and section 5.6 of MasterCard’s rules. (American Express and Discover don’t have similar rules.) MasterCard even has an online form you can use to report merchants that violate its rules.
In a Kiplinger.com poll, the majority of people who responded said merchants should ask for identification when you pay with a card. And we know some people write “see photo ID” on the back of their cards rather than signing them. There are two problems with this. Technically your card is not valid if it is not signed. And Stephens says there is a privacy risk associated with showing your ID. You’re letting someone you don’t know see your address and birth date.
Plus, you get no additional protection by showing identification, he says. Visa and MasterCard assume liability for unauthorized purchases (your liability is capped at $50). Besides, if someone is intent on using your card fraudulently, he will use a store’s self-service terminal, where he won’t be prompted to show ID.
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Reader Comments (9)
Posted by: Manid at 02/22/2010 05:08:34 PM
I think I read the same article before. I followed the advice when Walmart asked for an id. I left my purchase in the conveyor belt and walked away. I felt the stares of those behind me. They probably thought I had a stolen card. I complained to Walmart and the manager patiently explained to me that actually it is for the customer's benefit because it will prevent stolen cards from being used. The cashier does not make the decision to ask for an id. The computer have some parameters that informs the cashier to ask for an id. One of the parameters is if the card was stolen and was reported. In my case I used my card more than once that day. So now I willingly show my id.
Posted by: telkontar at 02/23/2010 04:11:46 PM
All factually correct, but not gospel truth. I show my photo ID; less risk than giving a credit card to a waiter. If the cashier refuses and you take it to the manager, the manager will approve. A fraudulent user will not want 2 witnesses and to do something that would attract attention -- security goals accomplished (probably). But the customer wasted his time -- important to me, but apparently not important to the nonprofit executive in the story. Regardless of the personal liability limitation ($50), we all share the costs of fraud. My best course -- show the card.
Posted by: Dan at 02/23/2010 07:29:38 PM
I still believe in the "NO ID, NO SALE". Really, can a cashier store all your information from your drivers license when all they are looking for is your name and matching your face to the photo, all in brief few seconds? I think not. Today I was in Wal-Mart and I asked the cashier if she checks ID when a credit card is used. She told me that she does if the person doesn't look right to her or doesn't ask the customer if she knows them. Not exactly the best fraud prevention method, but at least she will ask for ID when needed. Here's an idea for your readers, next time they use their credit card have them ask the cashier if they would like to see their ID just to see what kind of response they get.
Posted by: heya at 02/23/2010 11:58:08 PM
I ask for id when people use credit cards in my store. If they don't show id I don't make the sales. Keeping my job is more important then keeping the occasional disgruntled customer happy.
Posted by: Steve Green at 02/24/2010 08:43:51 AM
I recently heard that the strip on the back of a driver's license contains much more personal information than we realize, and many stores are after this information. Does anyone know about this?
Posted by: alice at 02/24/2010 05:09:10 PM
I do not agree with the other comments. The requirement to expose your personal information to an unknown person in order to complete a purchase carries extraordinary personal risk. I do not know the person to whom I am compelled to disclose my name, my address, my date of birth. This person could be anyone or anything. I am waiting for the victims to realize that the burglary or other mahem perpetrated was the result of a retailer's attempt at loss prevention. I try to shop only at stores that do not ask for id or I pay cash. I have declined to show my id and in some cases, it was not pushed. If it were, I would leave the items on the counter.
Posted by: scott at 02/25/2010 06:12:35 PM
One way around the address issue: If you have a PO Box, put that on your driver's license instead. You might also consider using your work address. I have found, bottom line, that each store, regardless of Mastercard and Visa policies, that each store will usually enforce their company policy pretty strictly. I have noticed at some stores where I frequently shop and where everyone knows me, they no longer ask. If you take the time to chat up the store personnel, and they get to know you as a person by sight, you might get less hassle, though this would work better at a local drugstore, for instance, than say a Walmart. Lastly, keep in mind that the cashier does not set store policy. However, with cameras virtually everywhere in stores, they know that if they do not adhere to the policy, they could be laid off. And in this economy, that means more today than ever. It also means that more stores are more understaffed than ever. And then on top of it, if you raise a stink over this issue, you are adding to their already high level of stress, so do not expect a reaction other than, "Come on, give me a break." I hope this is food for thought. Also, consider shifting more of your credit purchases from brick-and-mortar to online, where they never ask for ID, though occasionally they will ask for the security code on the code, which is definitely for your protection. Along these lines, there are still places that demand that you have a minimum amount to charge B4 accepting charge cards....Perhaps dial back the paranoia: How many overworked cashiers with many folks behind you in line are going to take the time to write own or memorize your address? Kind of does not make sense if you put it in that context. Use common sense and try to put yourself in their shoes and it might mitigate some concerns.
Posted by: pete at 03/02/2010 07:06:53 PM
I do not shop in stores that ask for id for the very same reason, personal safety, which is far more important than the high level of stress endured by a cashier occassioned by my refusal to show id. Indeed, I dare say a cashier would not care about my high level of stress if my home was burgled. The DMV requires a street address and one does not use one's work address for non-business correspondence. It is through the use of common sense that one protects one's person and property.
Posted by: Kikinaak at 04/07/2010 06:23:42 PM
I agree with alice and pete 100%...Too many people are conditioned to show their ID and even let people copy the thing with no questions. More people need to learn their rights and their duty to protect their personal information, as it is the keys to their life. As for wasting the cashiers time, I say small price to pay to correct the problem. The customer who refuses to show ID is not the one breaking the rules, the store is by demanding it.