In the near future, you will no longer have to sign for purchases. MasterCard, American Express, Visa and Discover have stated that they will be eliminating the need for signatures. This change was proposed a long time ago. Credit card companies are replacing signatures with magnetic chips. Ever since chips have been introduced, credit card fraud has been reduced by nearly 70 percent.
Robert Marrow works for Value Penguin. He stated that the chips have put less stress on merchants. They no longer have to verify that the signature on the back of your card matches your signature. When he started using a credit card with chips, He started putting a happy face on the receipts. Neither the banks nor the merchants said anything about it.
Robert also stated that signatures do not do much to protect people from fraud. It can be hard for the merchant to determine whether the signatures match. The chips are encrypted, so it is harder for credit card skimmers to get this information.
However, there may be even more scams that you have to look out for. Thieves are getting smarter. Many of them are putting shimmers at the ATM. The shimmers allow thieves to get your credit card information. It is a good idea to use a bank-operated ATM.
You will also need to double-check your credit card bills. Restaurants may be the first one to take advantage of the fact that you no longer have to sign for purchases. Many restaurants add an automatic gratuity.
Furthermore, it is best to use a credit card instead of a debit card. Credit cards are typically safer than because they have more liability protection. If you fail to report the transaction within 60 days, then you may be held liable for it even if it is fraudulent.