I Could Use Someone Else’s Credit Card to Buy My Groceries
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My fiancée and I talked about the fact that we can probably use each other’s credit cards to purchase things without getting caught. We realized that many times than not, we aren’t asked to show our IDs when we use our credit cards. We decided to brainstorm where we have bought something using our credit cards without showing our ID and came up with this list.
• Anything online
• Restaurants
• Groceries via self checkout
• Gas Stations
• Drug store
• Convenient stores
• Coffee
• Tons of entertainment venues
* note that this is based in United States since some other countries handle credit cards very differently
We concluded that we can live our lives with someone else’s credit card without ever showing our ID. Even without all the online stuff because we can virtually get anything over the internet nowadays, we can still get food, gas, coffee, and have fun with someone else’s credit card without fear!
Now, what about the places that asks you for ID?
• Larger department stores
• Groceries at the cashier
• Beer stores
• Bar (if you dare use a credit card)
Obviously there are some places that asks us for our IDs when we use our credit cards. Some of these places (like the bar) actually ask because they need to ID regardless but that’s not the point. I don’t understand why some stores check our IDs and some don’t. I can understand not asking if the amount is small, but what about places where the transaction is high?
Something else that is interesting is how each country handles credit card verification. I was born in Hong Kong, and people there always check the signature on the back of our cards against the one on the receipt. Everyone can argue that the signature can be forged, but it is at least better than not checking anything at all.
UK is taking a dramatic approach to this. They have gone to something called “chip and pin” where each credit card requires a pin similar to what we required for debit cards in the US. My friend actually went to UK recently and they won’t allow him to rent a car with his credit card because his credit card did not support the chip and pin technology! A nationwide change to combat this might be a little extreme but at least the country is telling their citizens that they will put in the effort to stop croaks.
How do you feel about this whole subject? Have you actually caught someone using someone else’s credit card? Have you accidentally used a card that’s not yours? Share with us your thoughts!
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Free Money Finance on August 26th, 2007 at 4:21 pm Says:
Carnival of Personal Finance…
Welcome to this week’s edition of the Carnival of Personal Finance. For those of you looking for/expecting the book giveaway I’ve been doing all month, please check back at the end of the day. For those of you who do…
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The Carnival is Up! on Consumerism Commentary: A Personal Finance Blog on August 26th, 2007 at 6:44 pm Says:
[...] The latest Carnival of Personal Finance has been posted at Free Money Finance. Besides the host’s picks for Editor’s Choice, I enjoyed Charities and Their Management Expense Ratios, Pay Yourself First, and Not Just Financially, and I Could Use Someone Else’s Credit Card to Buy My Groceries. [...]
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As a Brit, I’m used to chip and pin (it was introduced six months ago). It definitely helps with card fraud, except online. If you can’t use a pin number for some reason, you can still get a chip and sign card, but nearly all merchants now require you to have the chip, not just the magnetic stripe.
from what I can understand, once the credit card company authorizes the purchase, they’ll pay the company for it.
If it’s a stolen credit card and the owner reports it, the owner won’t re responsible for paying it as well.
So the credit card company is stuck with this “debt”. However, the money they make on absurd interest rates and merchant fees is enough to cover these cases.
Again, that’s just how I understand these things work
plonkee: I think the reason why my friend couldn’t get a car was because his credit card didn’t have the smart card on there. Ah well, another standard that everyone eventually will have to follow I assume.
Do the waiter/waitresses actually bring a card reader for you to put the pin pad when you pay at restaurants?
J2R: As I understand it, the fraud rate in the states is very low but it’s quite high in other countries which plays into how they handle the responsibilities etc etc.
Hi Ning,
Its interesting how different countries verify credit cards.
I am from India and over there only rich people are supposed to have a credit card. If a store asks for ID its usually considered an insult and that they don’t trust the customers. I have never been asked for my ID while in India. Its very easy for CC fraudsters in India.
VG: Wow that’s quite alarming! I wonder if India is the only country that does this or if there are other places that do the same thing.
This link should be included with every post about lack of credit card ID checks.
Lazy: That’s hilarious! Thanks for the end of the work week laughter!
This is a concern to several of the customers where I work. Our machines don’t require us to ask for an ID or signature unless the purchase is over $25. Very rarely do the customers even have to use a PIN, even when using a debit card. The only thing our system does is decline the card if it’s used twice in the same day, which we managers can easily override.
Yet some other places require a signature if you buy a candy bar for a dollar! I don’t mind signing, though. I also don’t mind showing my ID at stores that may ask for it. I’d rather do that so they know it’s really me than have my cards stolen and spent willy-nilly by the thief.
The 3-digit security code on the back of debit cards - do you think that should be obliterated so would-be thieves can’t use them for purchases online?
Ann: Actually I believe the owner can adjust the $25 requirement. He/she must’ve thought that it would be more convenient to the customer and allowing does “more right than bad”.
I think the extra security code does help a little. Not much since it’s really just 3 more numbers but anything helps. I hope that one day everyone changes to smart card technology so all the croaks are drastically reduced.
This remind me one of friends! She always writes “See my ID” on the back of the credit cards. How many people actually ask her to show the ID since 1999?? Just ONE!!
Hi Money Ning, I am from Taiwan and my country is good at checking people’s signature!! I remember I signed my English name one time on the receipt, and I was reported to her manager! It’s a very interesting experience that proves me “THEY CARE”!!!
Anna: Check out the link from Lazy Man a couple of comments up and you will see how America checks IDs
Emily: It is probably their policy to check for your ID. I wish that they care but it would be hard for me to imagine unless they are penalized somehow if the payment doesn’t go through and his/her boss paid.
I’ve read in some book that make sense to write “Photo ID Required”, went to store, she read it on back of my card and said “You misspelled one word”. That’s it, what more you can ask from this smart girl.
Alex:
That’s why we go to school!
Just wanted to point out the extra digits (usually 3) printed on a card (the CVV) are a security measure that is used online. While this is not the same as checking ID and its security could be argued it is still better than nothing. Further more IIRC it is against the terms a merchant agrees to with their credit card processor to store CVV.
Fenrir: I agree that something is better than nothing. I’m not sure if everyone complies to not storing the CVV information though since not everyone always ask for the CVV (even online stores).
You are aware that a credit card is considered a valid form of identification, right? It’s just not a photo ID (in most instances) or government issued.
Also, in the US it’s a violation of Mastercard and Visa merchant agreements to require secondary photo identification before accepting credit card payment. It’s also a violation to set a minimum or maximum amount for credit card transactions, or to add additional fees for credit card use.
i use my husbands card for just about everything… no one has ever noticed, interestingly because he has a very male name (christopher) and i am obviously female, i have been suprised a few times because the clerk will look at his name and hand me the pen to sign mine. i do always sign my name to the receipts, our bank has never cared (and no, my name is not on the account with his)
i am tired and seek of poverty
They don’t ask for ID because they are not allowed to. That is, if it’s a Visa card. Most people who ask for ID don’t know they shouldn’t.
who cares if they dont ask for ID. If the card is stolen and used, the credit card company reverses the charge(once the user complaints) and the merchant has to prove that the owner of the card actually used it. If the merchant cannot prove it then he has to pay a heavy fine. The credit card user is completely protected as long as he reports the loss and contests the charge on the bill.
I wrote “Check ID” in my signature line but am amazed at how often it does NOT happen… altho I rarely use the card anyway…
I think I will write as above Photo ID required….
Oddly enough, I don’t think I’ve had to show ID more than twice. My cards aren’t signed either. It’s a game to me. When I used to work in retail, I’d always ask if a card wasn’t signed. I don’t think that’s illegal, it’s being cautious. We’d check bills to make sure they’re not fake, why not ID for unsigned cards?
I was born in El Salvador and go back there to vacation often. There, when you use a credit card, not only do you have to show your ID but they also write your ID/DL number on the receipt and ask you for your phone number. Credit card fraud is not something they see too often. If you’re not local, they check your passport, they don’t play with that.