If you are like most credit card owners who frequently reach for your plastic when paying for purchases, you have probably been asked – at least from time to time – to present a valid form of identification along with the card. Most consumers have no objection to this requirement, because they assume it is for their own protection to prevent an imposter from fraudulently using their card. But many consumer advocates do have a problem with this common practice.
That’s because although it is fine for a merchant to ask you for your ID, the position and policy of companies that issue credit cards is clear. Except in special circumstances that are an exception to the rule, the merchant can ask for ID. But if you don’t show an ID the merchant is still required to complete the credit card transaction.
According to a recent article in the Baltimore Sun newspaper, MasterCard and Visa rules state that a retailer can’t decline a sale because a consumer refuses to present additional identification. They cannot just refuse to accept your credit card, in other words, because you don’t have a valid form of ID or because you don’t want to show them an ID.
But often times a store clerk will ask you to produce a valid driver’s license before they will accept your credit card. In some cases, like when you use your card to buy gas at a self-serve gas station or if you want to buy liquor, the merchant will need to see an ID. Some grocery stores and drug stores, for example, will ask for proof of age to show that you are at least 18 before they sell certain medications.
But that’s really about age verification, not about matching the customer to the credit card. When it comes to credit card companies, they are interested in ensuring that the people who carry their cards find it easy to use them. Otherwise, if there are too many hassles associated with credit card payments consumers may cut up their cards and simply pay by check or cash. The cardholder is typically protected from exposure to high amounts of liability, too, in the event that someone uses their card for fraudulent or illegal purchases. That’s thanks to rules implemented by large card issuers like Visa and MasterCard – plus passage of consumer protection credit card laws at the federal government level.
When challenged by merchants who argue that they need to ask for that additional piece of identification in order to protect themselves from being ripped off, most credit card companies say that there are already enough built-in protection for both cardholders and merchants. But the debate rages on, as many consumer advocacy groups agree with card companies that you should not have to present your identification card. They say that what is more important than the potential for credit card fraud is the greater potential for a loss of personal privacy due to having to constantly show one’s ID.
When you hand a clerk your driver’s license, for example, you are giving them lots of private information such as your home address, your birthday, your drivers’ license number, and your full legal name. With identify theft at an all-time high, these consumer advocates say that privacy and security arguments trump any arguments made by merchants concerned about people using stolen credit cards.
But what most cardholders just want to know is what their actual rights and obligations are when attempting to pay with plastic. If a merchant demands to see an ID card and you refuse to present one or don’t happen to have your driver’s license with you, then there may be nothing you can do to convince them to change their mind. However if you want to get the card issuing company involved on the spot, that might work. You can call the customer service number on the back of your card and request help getting the transaction processed. Of course this tactic will probably work best if you are dealing with a merchant in the USA. If you’re traveling overseas it may be harder to deal with differences in policy, so you should always have a valid picture ID on hand when heading out for distant shores.
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