Disco is verifying ID with a third party that scans your license and compares it to your selfie now

[crystal626]

Got approved for a new Discover last week and it arrived today. Went on the website to activate it and it said there was an error and to call. Went to the Discover app and activated it that way. It said it said it was successful so I went to use it. The charge was declined.

Called Discover customer service and had a frustrating experience with their new IVR. It didn't understand me twice and then said that the card was declined because it wasn't activated and asked if I wanted to activate it. I said to activate it and it asked me why I wanted a new card sent... Needless to say I yelled representative at it and it transferred me.

Anyway, I got a rep right away, explained what happened, we both laughed hard when I told her I had to yell at the IVR to get her on the line, and she checks. She says the card shows not activated, asks me the A number on the card, and says it's good to go.

We got off the phone and I go back to Amazon and try again... Declined again.

I wasn't about to call and deal with that IVR again so I went on the website and started a chat. They told me they showed the card wasn't active and then came back with a number to call. 

I called and the guy said that they have a process with new accounts that they have to verify my ID. They sent me a link and let me off the phone so I could do it. The website failed to actually automatically take a picture of either the front or back of my license but the pictures I took manually were accepted and the selfie was matched to my ID (good thing I went to the DMV and got a new one last year because I hadn't gotten a new pic since I was 21 because it kept letting me just renew online). I called back, they verified, and unlocked my card.

Went back to Amazon and tried again and this time it finally went through. Sheesh!

Hopefully this is Discover trying to find a less invasive verification method than the 4506C but it was still extremely obnoxious, especially as someone who has had a card with them for like 7 years. This was a lot of hassle for a card with a $4K limit and 27.24% ongoing APR (I was shocked, my other card is 18.49% and 27.24% is their highest but it doesn't matter since I won't carry a balance anyway) after the 0% for 15 months intro.

[rbentley]

Are you saying that discover no longer request 4506C forms. My understanding was that those were used for income verification, not just ID verification.

[crystal626]

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@rbentley wrote:

Are you saying that discover no longer request 4506C forms. My understanding was that those were used for income verification, not just ID verification.

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I'm not saying that, I said I hope that it's going to cut down on those requests. It seemed like in many cases Discover was using that process to verify ID because people were being chosen for that verification that shouldn't have set off red flags. I hadn't heard of them doing ID verification like this, only the 4506C, so it wouldn't surprise me if there was overlap. Generally speaking, credit card companies only care about your income because the government makes them care, unless you seriously overstate it, because you can't successfully file for BK after fudging your income anyway (the trustee will throw it out at best, you'll end up charged with fraud at worst), and some people who were being selected were seriously low credit risk with scores in the 800s and no debt so it just didn't make sense.

[ktm]

this is enough to keep me from ever apping for Discover! I don't even give banks my cell phone number, much less a selfie! This kind of data collecting is invasive and has it's own downsides. Not for me

[AndySoCal]

This process or ones like this one will be commonplace as time passes. Why? It is in response to  fraudsters opening accounts and or people stealing these new cards and trying to use them. 

[crystal626]

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@AndySoCal wrote:

This process or ones like this one will be commonplace as time passes. Why? It is in response to  fraudsters opening accounts and or people stealing these new cards and trying to use them. 

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Agreed. It is what it is.

[ktm]

Another reason there is incentive for processes like this is data collection, and there inlies the problem ... you the consumer have no control over your data once the third party collects it ...

[AndySoCal]

@ktm @I can understand your concern about the security of your information. My personal information has been exposed in at least 3 data breaches and is known to have been in 3 other data breaches.  Because I work for a financial institution I am limited on what I can say. There are banking regulations regarding third parties and banks that governs the sharing of information.  Reputational risk the financial penalties and what the auditors will do over the X number of years after that is not something a financial institution wants to go through. If you have doubts ask Wells Fargo it has taken them 7 years or more to be finally free of the regulators on the new account scandal. 

[youngandcreditwrthy]

I, for one, while I have verified income through bank statements/paystubs.. DO NOT think we should be giving up our rights to get credit or in general..

I work in banking/investments, and I pose the proposition to folks as a fraud prevention tactic to get them to agree to do it (in my case we match names on apps and bank accounts as well as verify income) but its just simply invasive and regardless of fraud, it has somehow become the standard norm.

we already have The Work Number which some employers report to pretty much without your permission (or its hidden somewhere) and that is shaky at best.

fact is, all collected data can be hacked, lost, stolen, etc. I love all the freebies, like Capital One Shopping cash back and gift cards, but how much am I really losing for a few hundred dollars when giving up my "shopping habits"

and governments get out of any wrongdoing by using third parties as we do in my business.

it's become too much particularly when the verify your ID takes you to a **bleep** link that doesn't work.

our world is crumbling and failing around us. Im starting to think my mid six figure income isnt even enough for me to live on and save comfortably. My car alone cost 1200 a month all in (gas, insurance, loan payment) and if I want a new car to keep up... 100k all in or increase to 1500 a month most likely.

Anyway good luck op.  just got a new discover card myself with 11k 15 mos 0% and 27.24% so now you have me scared considering my wallet was stolen with my ID but my DMv should have it replaced very very soon. phew!!!!      

[youngandcreditwrthy]

@AndySoCal  didnt you read the report? Wells fargo is getting out of that agreement a full three years early as a result of hollowing out of the CFPB.

the new director over there appointed by those we shall not name ceased all pending litigation and settlements and fully let them out (think they still had to pay their little baby fine of I think 11 million, but nevertheless they got out of their reporting to regulators at least 3 years early. ) It was supposed to end in 2028 IIRC.

If we got lower rates in exchange for removing CFPB, Id be all for it. But we are getting nothing. and nothing ever changed after 07-09 debacle. 

credit cards rates have gone up due to "regulation" and remained elevated even when other admins have hollowed out or tried to go back to completely free markets.

another example: double cycle billing was banned, and the banks INCLUDING AMEX went to triple cycle billing.

its crazy and nonsensical.

and for even more irony, previous admin was fully on board with banks as he was from the city where most banks are based to be able to keep their high rates. Delaware I think?