Are your Customers Still Signing Credit Card Receipts, Ditch the Pen!!
Well, ditch the pen in April of 2018 or at least that’s what Visa is now telling us in regard to ending the signature requirement on EMV processed transactions. Visa is now following the other card brands including MasterCard, Discover and American Express that have already announced the end to the requirement of signing credit card receipts.
Why End Signing Credit Card Receipts Now
What is the reason for ditching the requirement for signing credit card receipts? Well, the short answer is that the security of EMV and contactless EMV transactions through terminals such as the Dejavoo and Verifone lines, has turned the signature into a thing of the past. Whereas signatures have always been used to help validate the signer, in today’s fast paced world it is no longer a viable method. The security features of EMV have made the signature an obsolete afterthought, so the card issuers are finally catching up.
Merchants will still have the option to collect signature if their local laws allow or require, but why would you want to? Skipping the signing credit card receipt step will speed up the flow of transactions and allow merchants to service more customers more quickly. Wal Mart has been asking for years, even before EMV for the right to ditch the signature because they see the value in efficiency.
This does beg a question though, about how the consumer will respond to the new flow of a transaction. While, small transactions have been able to bypass signing the credit card receipts for some time, consumers are ready to pounce on the signature line for larger transactions. Will we see an initial disruption of the transaction flow as consumers become used to the process as we did with the integration of EMV, or will we instantly see a process improvement.
No matter how the initial reaction effects the transaction flow we fully expect the long-term benefit to be a smoother transaction for the customer. But, if you happen to own stock in a large pen manufacturer now might the time to sell. ?
Note: This is still a fluid situation, and more details on specifics regarding signing credit card receipts will be coming out before April 2018. Stay Tuned