It’s that time of year again. Shoppers are hitting stores and e-commerce sites in droves, meaning the risk for credit card fraud is more substantial. Luckily, this year we have EMV processing terminals and chip cards in place to help cut out in-store fraud. However, thousands of retailers still lack the proper equipment to facilitate the new processing system.
You may have been noticing more photo ID requests when shopping with your credit card recently. Sometimes, a cashier or clerk will ask for a driver’s license or other identification because you haven’t signed the back of your card, but there have been reports that some stores will ask for your ID regardless when making a credit card purchase.
While this might be a pain when shopping, retailers are just taking the proper precaution when asking for your photo ID. You may remember in 2013 and 2014, a string of massive data breaches hit retailers like Target and The Home Depot, putting millions of consumer credit card numbers at risk. When fraudsters obtain these credit card numbers, they’ll load them onto manufactured magnetic strip cards and sell them to make their profit. This means a copy of your credit card could show up anywhere in the world without you knowing.
This is why some retailers will request an ID when you use your credit card, especially for large purchases. They are just practicing precaution to ensure your card is actually yours, and to ensure that their database isn’t being targeted either.
EMV processing could mean the end of credit card fraud and photo ID requests from cashiers altogether. While the EMV transition has not gone as smoothly as expected, there is a lot of importance behind that brand new chip enabled card you get in the mail. It means a safer era for credit card processing and consumer safety. So take the photo ID requests in stride, and recognize that they are just part of an ongoing effort to keep your financial security intact.
The Instabill Blog reports regularly on new developments in EMV processing, so be sure to return to read more news and updates. If you’re a retail merchant looking for more information on EMV, read our guide to EMV resources today.