In the past, pre-EMV chip reader, merchants often required signatures in case there were disputes from their customers about their charges. The signature was the “proof” that the consumer made the purchase. If the signature didn’t match, then the consumer could claim it was a fraudulent charge.
However, as technology has advanced, so too has the need for signatures on credit and debit transactions. Today, most transactions just required inserting the card into the EMV chip reader and waiting for the transaction to be approved.
There is also the “tap-and-go” option some merchants are moving to with new card reader machines. This payment option allows customers to just tap the chip on their card to the machine to pay for their goods or services.
Then there are smartphone wallet payment options too. Instead of using the physical card to make purchases, the consumer uses their “virtual” wallet on their smartphone. This technology is also used with “tap-and-go” card machines since the customer just taps their phone on the machine to process the payment.
Are Signatures Really Not Needed?
There are some merchants who believe that signatures are still necessary to protect their interests. Other merchants are happy to move to signature-free transactions as this speeds up checkout lines. All four of the major card companies – Visa, MasterCard, AMEX, and Discover have already implemented no signature required transactions.
