Chip & Signature turning out to be chip &.…nothing

[Anonymous]

This post is related to the new chip credit cards and several observations.

Most Target and Walmart stores near us do not yet have the chip reading machines installed for chip credit cards. Husband and I visited two stores in the last week that just had them installed, and we were surprised to see that there is no chip and signature involved - just plug the chip card into the machine and did not need to sign.

We were both really surprised. Now, the chip only (no PIN) cards may prevent fraud in terms of a situation where Target's database is corrupted, for example, but we both were just thinking the signature at least provided a slight extra measure for consumer purchases (albeit a weak one). Now, anyone who procures our card can plug and play away, no signature needed, until its loss is discovered.

I realize that we would be covered by our card companies from any loss, but that's not really the point.

We both realize no vendor really looks at signatures anyway ( we have actually used each other's cards when signing at a restaurant or store, and no one even bothered to check our signatures. The restaurants and stores didn't even bother to check that I was a woman using a card with a man's name on it. Pretty sad.

So, we recognize there are not a ton of checks and balances in place currently even before the chip cards. Of course it would be ideal if we could implement the chip and PIN now in the US as they have in Europe as a standard. Chip and PIN was required when we were in Europe and we couldn't even use swipe cards.

I at least thought the US cards in the meantime would be chip and signature and was pretty surprised.

Regarding internet protection, I love that some card companies (thank you Citi!) are assigning temporary, one-time use card numbers that increase the level of protection. This is a great idea.

[surehit]

How large were these purchases? I know that where I work you stil need to sign for any purchase over a certain amount, even with a chip card. In general I don't think the signature is really for your protection, most people just scribble. If someone really is trying to use my card; I'd hope they aren't stupid enough to not spend the 60 seconds it would take to imitate my signature. 

[Anonymous]

One was $80 and the other was $55.

I did also visit a grocery store this morning that had a chip reader and made a $38 purchase - no signature required.

[Themanwhocan]

It probably depends on the amount of the transaction. At my grocery store, they raised the bar on when I had to sign to $75 recently.  I imagine that each company can decide what the border is between extra security and customer inconvenience.

[Anonymous]

Thanks, themanwhocan! Good insights. I guess the concept that bothers me is that fraudsters often try to see if they can make smaller purchases to see if the card works first, so they could slip under the radar that way.

Plus, given the fact that no one even looks at the signature now (as when I signed my husband's name, and he's a man!), I don't know that requiring a signature over a certain purchase amount would make a chip card any stronger anyway.

I really wish we had gone for the chip and PIN directly. I'm glad for the chip cards, but noticing some interesting things.

[OmarGB9]

As others have said, your transaction may have been too small to require a signature. Even on mag stripe cards, at least where I work at, if your transaction is under a certain amount, it won't ask for a signature. Not sure what that amount is (never been able to figure it out; most of the time I deal with fairly large $100+ purchases) though. But anyway that may be the case here. EDIT: Nvm. You already responded lol.

[Callandra]

I'm actually surprised you didn't have to sign for the $80 purchase. I know all the Wal-Marts, Targets, and Publix in this area the threshold with swiping the card is $50 (but maybe the max. for a no signature transaction depends on the area?). Anything over $50 requires a signature but the only card I have with a chip so far is BBR which I haven't used at any of those places so I don't know if there's a difference. Maybe they're still getting the kinks out? 

[myjourney]

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@Callandra wrote:

I'm actually surprised you didn't have to sign for the $80 purchase. I know all the Wal-Marts, Targets, and Publix in this area the threshold with swiping the card is $50 (but maybe the max. for a no signature transaction depends on the area?). Anything over $50 requires a signature but the only card I have with a chip so far is BBR which I haven't used at any of those places so I don't know if there's a difference. Maybe they're still getting the kinks out? 

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+1 it has always been $50 everywhere I've seen as well

[Anonymous]

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@Callandra wrote:

maybe the max. for a no signature transaction depends on the (geographic) area?). Maybe they're still getting the kinks out? 

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I sure hope that's the case. We would not mind having to sign at all and would actually prefer it just as an extra measure.

[Anonymous]

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Callandra wrote:

 I know all the Wal-Marts, Targets, and Publix in this area the threshold with swiping the card is $50 (but maybe the max. for a no signature transaction depends on the (geographic) area?). 

 

humuhumunukunukuapua'a wrote:

The swipe threshold for our local grocery stores is anything over $20, but they seem to have completely lifted that threshold for chip machine usage- I didn't have to sign for the $38 purchase this morning at our grocery store. We don't have Publix stores here so I could not try them.

It's really interesting seeing all of these changes and how they play out.