Discover Credit Cards Join the Signature-Free Transaction Strategy

by Brian Riley 0

Payment networks tested the no-signature card requriements over the past 10 years to see if it adds value or not.  With the ubiquity of EMV chips, the signature is of little value.  Can you even remember the last time a clerk looked at your signature and validated it to what is on the back?

Some industries are prime for no-signature.  Imagine the limited fraud at dry cleaners or movie theatres for $30 purchases.  It is unlikely that you’d see much fraud there.  Also, with the power of predictive analytics on the back end, and chip coding on the front, the barriers are strong.

  • Chip technology in cards that, among other security features, helps prevent card cloning by validating that it is genuine every time it is used

  • Discover® Digital Exchange that manages payment credentials on mobile and digital devices, and enables tokenization to secure the transaction

  • For credit cardmembers who activate, Discover will monitor thousands of risky websites and alert Discover cardmembers if their Social Security number is found, or if any new accounts are opened on their Experian® credit report1

Discover is a little late to the game in moving towards Sig-Free transactions, but letting things settle and having MC and Visa work out the kinks is not a bad idea.

Overview by Brian Riley, Credit Advisory Service at Mercator Advisory Group

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