I often see in American TV programs/films someone handing their credit card to someone to go and buy something or use in some way. Are the way credit cards can be used different in America?
I think it may be down to lack of Chip and PIN across the states, as over here you would also have to give the person your PIN. Not sure if that's what you mean, but nothing stopping you giving your card to someone else over here (just need the PIN too).
Because there is no chip and pin the assistant has to swipe the magnetic strip. You then get a printed receipt you have to sign.
A lot of things (eg. car rentals, hotel rooms) require large, refundable deposits from credit cards over there too, often into the thousands.
But they never give out a pin of give the impression that the person using the cards needs tha pin Yes but surely you cannot sign as the cards owner?
I'm from the UK, but I work with american card systems... its... remarkably outdated. And insecure. So, in the US, they haven't quite managed to accept the fact Chip 'n' Pin (or EMV, as its real name is) is actually so much more secure. Like insanely more secure than the mag stripe. Firstly, a debit card can also be a credit card, the terminal either asks which you want to use, or assumes credit because... well its easier. Debit needs a PIN, credit doesn't. A transaction is a swipe of your card through a magstripe (the black strip on the back of a card). The info obtained is just the card details you can see on the card, and a few other things that determine restrictions. For a credit transaction, this info isn't neccesarily completely verified online right away, and may be stored. And may get stuff added to it... like if you're at a bar, or a hotel. You just give them you card, and they charge as neccesary, until whenever they feel like. They tend to run checks of how much you can spend initially, maybe put a percentage on hold, and complete at the end of your visit. There is no verification that you are the owner of the card at all. The signature? Not even required. Often the transaction is completely approved before the signature is taken, and if you don't sign, nobody really cares. Its only used if theres an issue, and isn't really any form of proof. Debit is checked online immediately, part of the PIN verification, but, in a joyous twist... that just approves the card and pin association. The data stored on the device and transmitted later is still enough to use your card without your knowledge. Any other online checks for credit or debit will only confirm there is enough in the account to make the transaction. For large transactions the Sales Rep may need to call up the bank for approval, which will ask some security questions, but he can then approve it. On the device the card data must be stored pretty much unencrypted, only for the period of the transaction (which can be days for hotels), though broadcast tends to be encrypted. The current US card system is little more secure than a wet paper bag. The contactless system is...abysmal, and thats probably why it hasn't taken off. It basically constantly broadcasts your card data in the clear.... EMV is coming by the end of next year, due to a liability shift from the merchant to the banking companies which is much more secure on the terminal. Every transaction is a unique encrypted packet, its near impossible to intercept and obtain card data, spoof transactions or anything like that. That said... they do really like signatures and are refusing to use chip and pin, instead resorting to chip and signature.... which for the customer is about as secure as before. Visa US claims they won't be able to update their systems for decades. Anyway, the rest of the world uses chip and pin, resorting to chip and signature if the customer can't use a pin for whatever reason (usually memory issues). Mag stripes are part of the past, and will be completely removed from new cards in 2016. Non US cards may work using the MagStripe there if your bank allows it.
It's not that bad, but it's remarkably inconsistent. There are many occasions where they will swipe the card, you scribble anything you want on the paper and the sale goes through without them so much as looking at the signature, but just as often I'm asked for photo ID and that's checked against the name on the card. There doesn't seem to be any correlation to the value of the purchase though - I've paid for items and meals amounting to several hundred $ without so much as a glance at the signature strip and also bought things for relatively small amounts where they've scrutinised my drivers license. Purchases under $50 will typically not require a signature or ID though, much like contactless payments over here. There are a lot of US issue credit cards that have a photo on the front as well, which they're supposed to check. Whether they do or not is clearly another issue. If the assistant is on a slow day I doubt it makes a bit of difference. Chip and PIN is clearly foolproof-ish the way forward, though. What? Not really. I've stayed in a metric boatload of hotels throughout the US and never have I paid more than $100 or so as a deposit to allow things to be charged to the room, and that's no different anywhere in the world.
Ironically the lack of security is what drives adoption of cards as a payment method, not having to enter a pin and not having to wait for a transaction approval to be sent from the bank sure does speed up transactions. Meanwhile everywhere else in the world paying by cash is still the fastest payment method available (at least until there is an accepted standard for paying with your smartphone). But back to America, Credit Card security isn't the only aspect of the financial system that is horribly out of date, the use of cheques is even more rampant over there than in the UK and if it comes to convenience, speed and cost of bank transactions for normal people they are as 3rd world as the UKs public transport.
A deposit is never charged, but they want a card on file in case you damage stuff. Yes, they take your card, swipe the magnetic strip, and you sign a receipt. They rarely confirm the signature on the receipt with the signature you may or may not have put on the back of your card, and at no point is a pin required. It's awful. When I was in the UK (and Europe) last summer I was so ashamed to use my card anywhere. The problem is that there's nothing you can really do as an American to fix it. You just have to be like, "Sorry. I'm American and there's literally nothing I can do to fix this. I really am sorry for the trouble." And then they go get their manager to ask them how to charge a card with no chip in it. It should be changing within the next two years (finally). There are also some products coming to market to make cards better in general. https://getfinal.com/ https://onlycoin.com/ I would like either of those, although you would have to convince people that the "coin" card you are using isn't a thing where you store all the credit cards you have stolen . . .
Wait 'til you get contactless (RFID) debit cards that you just touch to the reader when it beeps. These are only good for <£20 however.
This depends entirely on the place of business. In some stores, when I go to check out I hand the card to the cashier and they swipe the card. If I'm using my debit card (which is 99.9% of the time), I'll be asked to input my PIN on a little device. The exception to this is restaurants, in which case the server will take my card and return with a receipt for me to sign. If I use my credit card (for example, my recent trip to the tire shop), the cashier will take my card, swipe it, then ask me to sign with a stylus and touchscreen. I know of one retailer that actually asks to see my driver's license to verify that I am the cardholder, and this is in addition to the PIN that I enter in the machine. On the other hand, at most of the retailers I visit the cashier rings up the items, tells me the total, and I swipe the card myself and complete the transaction on a keypad. I could in theory give my card to my child and have her go get some groceries if need be. At the cafeteria here at work (and just about every fast food drive through), I hand my debit card to the cashier, they swipe it, and that's it. No signatures, no PINs, just a smile and "have a nice day." As has been said, the hotels in which I've stayed have all asked for a credit card up front to have on file. This is just in case I try to skip out, destroy the room, or for any other reason they would need to charge me. In those cases, the card is either already on file because I made the reservation online, or I hand my card to the person at the front desk, they swipe it, and then they hand it back to me. Nobody has ever asked to see the signature on the back. In fact, I've never signed a single card I've owned. I think Mister_Tad summed it up nicely:
That is the point of my original post people in America seem able to hand their credit card to their children, secretaries, wives in fact anyone to use and I wondered how this was possible. As we cannot do it here unless we enter the pin which would have to get from the card holder. Yet no one seems to do that in the US.
Growing up my mom gave me her credit/debit card on some occasions to go fill the car with gas (petrol) or buy groceries. I would sometimes be asked for ID. Having the same last name was often enough. If I needed to sign (for credit transactions) I would just sign my own name (even though that doesn't really make sense). For debit transactions I would just use my mom's pin, which she would give to me. My wife and I use each other's cards. Again, we just need to know the pin or sign our own name. Nobody seems to question that the card doesn't have our exact name on it as long as we appear to be legitimate users. In some ways it's really nice, but if you ever lose your card, call the bank immediately.
I've quite often used other people's cards, or lent them mine and given them the PIN (9228). Nobody even bats an eyelid when I use my girlfriend's, which has her first name embossed on it.
