Sign. Your. Credit. Card.

So, the other day, I was at the Post Office and a lady swiped her credit card for a purchase. The clerk asked to see the card, turned it over, and told her that she'd need to sign the card before he would process it. She was irritated by this, and threw a mini-temper tantrum at the very nice clerk. It went something like this:

Why do I need to sign my card? Can't you just look at my ID?

I'm sorry, ma'am, but it's our policy to only accept signed cards.

Ugh. :Scoff: Fine. I'll just use my debit card and PIN.

Okay. I know there are bajillions of people that think this way, but allow me three minutes to appeal to your common sense.

Assume your name is "Ricky Balls", and also assume that you have the misconstrued mindset that not signing the back of your card is the best route for your own protection. Next, assume I steal your wallet. Now, I have a blank credit card and I can sign YOUR name, "Ricky Balls," any way I want. The next time I use your card, the clerk will ask to see your card and compare my signature and, lo-and-behold, it will be a perfect match. If you haven't tried this already, take a minute of your time and attempt to forge someone's signature. It's not easy; in fact, it's very difficult to do. By not signing the back of your card, you are not only making yourself a bigger and easier target, you're also crippling your ability to dispute charges on your invalid card.

Many don't know that your credit card is not valid until you've signed the back. Merchants should not accept your card (although many do) if the signature panel is blank or contains anything other than your legal name as printed on the front of the card. "SEE ID," et al., render your card invalid.

Visa's Rules for Merchant's handbook states:

"See ID or Check for ID is not a valid substitute for a signature. The customer must sign the card, in your presence." And if the customer refuses? "A refusal to sign means the card is still invalid and cannot be accepted." The handbook then reminds merchants that if they ignore this mandate and accept an unsigned card anyway, they risk financial liability should the cardholder later dispute the charge. 

By signing the signature panel, you're agreeing to be legally bound by the terms stated in your card issuer's agreement. Legally, even by NOT signing the back, you can be bound to these same terms, but these terms can be exercised at your issuer's discression. In other words, they can refuse to honor disputes and fraudulent purchases at your expense.

Sure, 80% of the time, no one is going to ask or compare your signed card to a driver's license of signature capture, but 100% of the time, a thief will be able to use your unsigned card and ruin your account, credit, and financial stability.

So, in short, the best solution is this one: sign the back of your card and write "See Photo ID." Also, don't get irritated by the friendly clerk that asks to see your license or compares your signature. They're looking out for their company and for your bank account. Instead, shoot them a smile, thank them for watching out for you, and make their day a little bit easier.

As a victim of identity theft two years ago, I encourage everyone to obtain an annual copy of your three credit reports (Experian, TransUnion, and Equifax). They're all available to you at no cost (once per year) at www.annualcreditreport.com. Also, if you are denied credit for any reason, you are entitled to another copy of your report from the bureau where your information was polled.

If you feel you've fallen victim to identity theft, please take immediate action. Always use common sense, and dial the emergency number on the back of your card immediately.

For those who want to take it one step further, I highly recommend Identity Guard's service. It's probably the best $14 a month I've spent and literally keeps me up to date by the minute on new inquiries, applications, and disclosures. They also offer one million dollars in identity insurance if you fall victim to identity theft or fraud and have a team of specialists waiting to help you sort out the details 24/7/365. And no... I don't get paid to refer you. :)

Your mileage may vary.