Fourty-four percent of American consumers have chosen not to sign the back of their payments cards, instead writing see ID or leaving it blank, according to a study sponsored by Jumio and conducted online by Harris Interactive.
One possible reason for this tactic is to require merchants to verify their identities, but 87% of respondents report that in most cases, they are not asked for an ID. Harris surveyed 2,022 U.S. adults in September.
The liability isnt with the merchant, so theres not a terribly strong incentive to ask for identity other than it keeping chargebacks below the threshold that would keep the card networks from dropping them (about 1%), says Marc Barach, chief marketing and strategy officer at Jumio.
The U.S. migration to the EMV-chip card standard, which includes a liability shift for most non-compliant merchants by 2015, may change that. Once there is a liability shift, merchants will be thinking more about this," Barach says.
Twenty-six percent of respondents reported a fraudulent charge was made to their bank account or credit card by someone else, and 29% of Americans confessed to making a purchaseeither online or in personwith a friend or family member's credit or debit card, whether or not they had permission.
Theres also a wide use of fake IDs28% say theyve borrowed an ID from a family member or a friend; while 24% made their own fake ID and 12% had it made by someone else.
And about a third of respondents say theyd prefer to flash a digital version of their ID on the smartphone, if that was an option. Jumio has developed technology that can perform that function, so they have a stake in those numbers. PayPal and Square incorporate photo ID as part of their digital wallets.