Think Writing "See ID" on Your Card Is a Good Idea? Think Again!

You may have seen people writing "See ID" on the back of their debit or credit cards. Maybe you're someone who does this too. In todays world, credit card fraud is a very common occurrence, and many individuals try to protect themselves by putting these instructions in the signature panel instead of simply signing their card. But does this strategy really work?

The short answer is, if you are seriously worried about theft, there are better things to do.

The theory behind writing "See ID" is that cashiers or merchants will ask the credit card user to produce valid identification at the time of payment, thereby deterring would-be thieves from conducting fraudulent transactions. However, there are several issues with this practice.

For many transactions, such as those conducted over the telephone or on the Internet, there is no need for the merchant or cashier to handle the card. For these transactions, writing on the card would have no effect.

Many department stores have installed point-of-service terminals where customers can swipe the card themselves and then sign the display. The existence of contactless payment cards and smartphone payment systems means that a buyer can simply wave his card or phone near a card reader to conduct the transaction. Again, writing on the card would have no effect.

Additionally, most major card networks have implemented no-signature-required programs. This means that the consumer is no longer required to sign for purchases that cost less than a specified amount, say $25 or $50.

In case of transactions where the card does change hands, there is no guarantee that the cashier will actually look at the back of the card.

Most card networks are also disapproving of the "See ID" practice. Payment networks, such as Visa and MasterCard, caution merchants to not accept unsigned cards. In this case, by writing "See ID" instead of signing your card, you've not only prevented theft, you also prevent yourself from using the card! American Express and Discover Card expect cashiers to compare the signature on the back of the card with that of the cardholder.

Thus, writing "See ID" on the back of a credit or debit card is not enough to prevent fraud. In fact, in many cases it's not even allowed.

What is your biggest fear about this? By federal law, your liability for unauthorized transactions cannot exceed $50. Moreover, most of the major credit cards have put in place zero-liability policies that further reduce your risk. Credit card issuers also have expensive monitoring systems aimed at identifying fraudulent activity and protecting accounts from misuse.

Nevertheless, if writing "See ID" on the back of your card provides you with mental peace, go ahead and do it – just make sure that you sign on the signature panel as well!

And let's be real, credit card fraud can also happen due to data breaches, such as those that recently took place at Target and Home Depot. So, in reality, a stolen credit card is the least of your worries.

What you really need to do in order to reduce the threat of credit card fraud is monitor your accounts more frequently. Check your statements on a weekly basis, rather than monthly – this will allow you to identify unauthorized transactions and take remedial steps as soon as possible.

Another thing that you can do is sign up for text and email alerts which will notify you the moment charges are made to your account. Make sure you keep all your cards in a safe place, and carry only those that you intend to use. If a card ever goes missing or is stolen, call your issuer to report it immediately.

We hope that this article has helped you identify ways through which you can better prevent credit card fraud, rather than simply writing "See ID" in the signature panel. But we'd like to help even more! Our team at Fund&Grow can provide individuals or businesses with good credit access to $50,000 – $250,000 at 0% with no back-end fees. So if you need funds to expand your organization or achieve your business goals, call us immediately!