Credit Card Companies Eliminating Signature Requirements (FBN)


It’s the end of an era that few people seemed to notice. This month, all major credit card companies will stop requiring a signature for purchases made with a card that uses a security chip. The change has gradually been phased in since the chip system was introduced in the U.S. about two years ago.

Cyber security expert Alan Brill, senior managing director at the security firm Kroll, said banks and credit card companies have systems in place to detect fraud that are far more effective than signature authentication. He said spending habits and transaction locations are red flags. He saidcredit card companies make “risk decisions a million times an hour,” adding “the systems dynamically do a good job.”