March 11, 2009
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Credit Card Signatures, Pt.4
What about the I-Net?Well, what about credit cards on the Internet? Do you need a signature credit card? How does all that work anyway? It so happens that the Internet is the method of choice for credit card fraudsters. Most amateur fraudsters are fighting time. They want the money ASAP, before you do something to stop them. Besides, it's a lot harder to get physically caught over the Internet or over the phone. They're not usually concerned about personal shopping. They just want something they can turn into ready cash. Then, they're home free. They can shop for themselves on their own time in a safe manner.
In this case, they're not really worried about your signature on the credit card. What they really need, they already have – the CVV2 on the back of the credit card (three or four-digit code on the right-hand side of the signature strip. That way, they're not face-to-face with any humans. Even checking ID won't help.
The situation is similar with unattended credit card terminals. Even though having to be physically present, there are no humans checking up on them. These would be places like kiosks, gas stations and retail store's self-checkout lines. Some check for billing zip codes but, not much else. Many, perform no checking at all. There is little you can do to stop these methods.
As far as Internet and phone orders, there is something you can do. The little CVV2 code on the back of the credit card means a lot to a thief. Without that, they'll have to be present to make purchases (as you would, also). Copy the CVV2 from the back of the card and keep it in a safe place (be certain to not lose it or divulge it). Then, find a way to make the code on the card unreadable. That code is so secure, it isn't even written to the magnetic strip. New PCI regulations require that it be not be stored anywhere except with your lending bank and the card association. Not even the payment processor (like Heartland) is not allowed to store it anymore. It's only used by the merchant when authorizing a charge. Then, the merchant must erase it from their system as well.
Beyond that, a little common sense goes a long way. Never leave your credit card unattended, have your picture laminated on the card, keep it separate from your wallet if you wish but, by all means...SIGN THAT CARD.