Writing 'See ID' on credit cards is a waste of time

November 10, 2021 • Issue #119

Hi y’all —

My grandma is a very wise woman, and I’m not only saying that because she subscribes to this newsletter. (Hi, Oma!)

She’s taught me so much — to say “yes, ma’am,” never “yeah;” to eat black eyed peas on New Year’s Day for good luck; to always crack eggs into a separate bowl while baking in case they’ve gone bad… the list of lessons goes on and on.

But I admit that recently I’ve grown skeptical of one of her longstanding practices. For as long as I can remember, my grandma has written “See ID” in Sharpie on the back of her credit card instead of signing it. It’s allegedly for security purposes, but the more I learn about money the less I think that’s legit.

Because I'm apparently determined to stir drama up before Thanksgiving, I decided to ask the experts. Does writing “See ID” on the back of my card actually do anything?

I called Kathy Stokes, AARP’s director of fraud prevention programs, to run a fact-check. She told me that the “See ID” move dates back to when customers would physically hand their card over to a cashier. The theory was that “See ID” would thwart a thief because their license wouldn’t match the name on the card even if they could forge a signature.

But, as Stokes pointed out, times have changed.

“When’s the last time you handed your card to someone other than at a restaurant?” she asks. “I don’t think it makes a difference anymore.”

It’s not just my grandma. People have been recommending the “See ID” (sometimes abbreviated as “CID”) trick for years. It’s been highlighted by the TODAY Show. It appeared in a 2008 post on the blog Personal Finance Hacks, with an added tip to “try writing the ‘See ID’ in a different color ink to draw extra attention.” It’s even on the website for Utica College’s Center for Identity Management and Information Protection.

However, Mohamed Abdelsadek, executive vice president of North America services for Mastercard, confirmed that it’s outdated advice.

“Perhaps back then, it may have made some sense,” he adds. “It adds absolutely no security these days.”

In fact, Mastercard announced in 2018 that it was making cardholder signatures optional on not only cards but also receipts for transactions. Citing advances in fraud protection, so did American Express, Discover and Visa.

Abdelsadek said that was done in part because the use of the signature as a means of identity verification was limited and hard for merchants to deal with. Mastercard has since shifted to EMV chips, contactless payment initiatives like tap to pay and biometrics. (It offers a card with a built-in fingerprint sensor that activates whenever dipped into a point-of-sale machine.)

“There's a whole lot of technology around it,” Abdelsadek adds. “It creates a much more secure and seamless checkout experience for customers.”

Stokes told me that card-not-present, or CNP, fraud is much more common than IRL card crimes anyway. What the Federal Reserve calls “remote card fraud” reached $4.57 billion in 2016, up from $3.4 billion the year before.

“It’s not when you’re at a retail store and checking out with a card via chip. It’s someone accessing that information and then making online purchases where they can’t make sure it is you,” she adds.

Luckily, technology is also improving here. Financial systems can identify potentially fraudulent purchases and alert me before too much damage can be done. Plus, with CNP fraud, I’m generally not on the hook for funds lost to bad guys. Institutions have gotten “really good at detecting it because they’re responsible for it,” according to Stokes.

That said, though, I need to always be using my credit card for maximum protection. 

That’s because credit cards are governed by the Fair Credit Billing Act, which says that if I tell my provider that someone nefarious has my card, the maximum amount of money I can lose is $50. Most credit card firms will do me one better, too, with zero liability policies.

Debit cards, on the other hand, are subject to the Electronic Fund Transfer Act. Depending on how long I take before telling my bank about unauthorized charges, there’s no limit to the cash I can lose.

Another major difference between a bogus credit card purchase and debit card purchase? With credit cards, the money that’s tied up belongs to a company. With debit cards, money lost belongs to me — and if I need to, say, pay rent while the bank is trying to recover my funds, I’m out of luck.

THE BOTTOM LINE

(but please don't tell me you scrolled past all of my hard work)

Writing “See ID” on my credit card doesn’t do much these days because 1) identity verification technology has improved and 2) most fraud happens online anyway. 

But there are still ways I can safeguard my money from bad actors. I should use a credit card for maximum protection. Stokes recommended turning on transaction alerts that notify me every time money comes out of my account. Abdelsadek said to also avoid giving my account or login information to someone over the phone and change my passwords frequently.

“The whole ecosystem has been designed to help protect the end consumer,” he adds. “But as a customer, you should also be savvy, right?”

VIA GIPHY

RECEIPT OF THE WEEK

check out this wild celebrity purchase

VIA INSTAGRAM

Actress Shay Mitchell recently did a “get ready with me” video for Vogue in which she broke down her 58-step (!) skincare routine. Mitchell’s regimen includes a couple of super-cheap products, like a $15 sheet mask from Honest, but it also features heavy hitters like a $399 sculpting wand and — my personal favorite — a $35, 24-karat gold boob mask. Classic Peach tbh.

INTERNET GOLD

five things I'm loving online right now

1	Fox on frost.
2	I loved this CNN piece on the chess pros in Africa who are cultivating a new generation of expert players. Young chess players score scholarships, travel for tournaments and form relationships with mentors that set them on the path to success. "To live here is hard," one 14-year-old participant told Reuters. "On the chess board you work hard in order to win, and from winning chess games I believe I can do better in becoming a champion and being wealthy also." Checkmate.
3	Me? Ignoring my deadlines to daydream about this focaccia charcuterie board again? No…
4	My new favorite place on the internet is the comment section on the YouTube video for “Cafe in the forest with a lot of rain.” So wholesome, so cozy.
5	Living for these hyper-specific Spotify playlists, including “ur person is sailing out at sea & u can’t contact them apart from the occasional email,” “i’m not lactose intolerant, i drink oat milk because i feel like it matches my vibe better,” and “my commitment issues are shining through.”

401(K)9 CONTRIBUTION

send me cute pictures of your pets, please

VIA JEAN SULLIVAN

Meet Jackie, who sleeps soundly knowing her credit pawd is safe despite not having “See ID” on the back. 

See you next week.
 

 
P.S. How do you keep your credit card info safe? What’s the best thing your grandma taught you? What incredibly detailed situation in your life do you need a playlist for? Send tunes to julia.glum@money.com or tweet @SuperJulia on Twitter. Ty!

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