Signing the back of your credit card is an important security step for protecting your cardâs information if it should fall into the wrong hands. Merchants are supposed to check that the signature on the card matches the signature on the sales receipt as a security precaution. If a card has no signature on the back, they arenât required to process the ensuing payment.
Should You Sign the Back of Your Credit Card?
Signing the back of your credit card is always better than not, without exception. Itâs another step provided by your credit card company to try and keep your personal information as safe as possible. When used in conjunction with the card verification value (CVV) on your card, it creates a line of defense should a fraudster try to swipe your plastic.
While the signature itself doesnât protect you, the ability for a salesman to match it to your existing official signatures is where its value lies. This is done most commonly with your driverâs license, or if youâre abroad, your passport is a fine stand-in. In other words, taking a few seconds to sign that little black or white strip could be the difference between your identity being stolen and not.
Hereâs a look at how the major credit payment networks handle unsigned cards:
Mastercard
Mastercard urges merchants in its payment network not to accept charges from customers with unsigned credit cards. On the back of every Mastercard, it even says ânot valid unless signed.â
The company tries to instill in merchants that they should not process customer transactions unless the customerâs signature appears in the signature space on the back of the card.
If the card has no signature, merchants are to request the customer sign the card. A merchant also will need to see a confirming form of identification.
Visa
At Visa, merchants must verify that the signature on the back of any card matches the customerâs signature on the transaction receipt and any identification. They want to know you are who you say you are and recreating the same signature on demand when you sign for a credit card transaction is one way to do it.
Visa considers an unsigned credit card to be invalid. The words âNot Valid Without Signatureâ appear above, below or beside the signature panel on all Visa cards. Turn over the card and youâll see it. And like Mastercard, Visa urges merchants not to accept unsigned credit cards.
When a customer presents an unsigned Visa card to a merchant for payment, Visa requires a merchant to check the customerâs identification by requesting a government-issued form of ID.
Where permissible by state law, the Visa merchant may also write the customerâs ID serial number and expiration date on the sales receipt. (Beginning in California in 1971, the recording of personal information during credit card transactions has become illegal, with the passage of the Song-Beverly Credit Card Act.)
Visa also instructs merchants to ask the customer to sign the card, within full view of the merchant. They then check that the customerâs newly written signature on the credit card matches the signature on the customerâs ID. If a customer refuses to sign a Visa card, the card is considered invalid and cannot be processed. Merchants will then be forced to ask the customer for another form of payment.
Discover
Discover keeps things very simple. The company urges its cardholders to sign the backs of their Discover cards as soon as they activate them. This is because the signature makes the card valid and a cashier may decline the transaction if the card is not signed.
American Express
American Express also urges retailers to compare a customerâs signature on the back of an American Express card with the transaction sales receipt. And if an American Express card is presented unsigned, the clerk is to request a photo ID of the customer with a signature. Following this, they must request the customer sign the back of the American Express card and the sales receipt while the clerk is holding on to the customerâs photo ID.
Writing âSee IDâ on a Credit Card
Writing âsee IDâ or âcheck IDâ on a credit card might seem like a great way to protect from fraud. But it actually may invalidate the card. This is because only your valid signature that a merchant can match with a signature on a sales receipt is acceptable. In some cases, the merchant may ask you for another card to make your purchase. To save yourself from a slower-than-needed transaction at the cash register, sign your credit card as intended.
Tips for Protecting Against Credit Card Fraud
Only carry the credit cards you need. When you travel, keep a list of the credit cards that you have with you. Make note of their full account numbers and expiration dates, as well as contact numbers for the issuers. It will come in handy if something should happen to your wallet, phone or both when traveling.
Go paperless and start checking your credit card statements online to avoid having to keep and shred your paper statements. Just be sure to keep your online passwords in a safe place and to update them from time to time.
Check your credit card transactions each month to check for errors or suspicious activity. Quickly report any transaction you donât recognize to your card issuer.
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Surveys consistently show that no credit card reward is more popular than cold, hard cash. Indeed, cash back cards came out well ahead of other types of rewards cards in a recent CreditCards.com survey, which found that close to half of U.S. adults own a cash back credit card.
And for good reason: Instead of having to decipher a complex redemption scheme, you can opt for a simple, straightforward reward and use it in the way that fits you best.
Here we take a look at some of the most common types of cash back redemption, along with some of the restrictions you may encounter when redeeming your rewards.
How cash back cards work
Cash back cards come in a variety of flavors, but they all fundamentally work the same way: As you make purchases with your card, you earn cash rewards at a set rate. There are three major types of cash back cards.
Flat-rate cash back cards offer the same percentage of cash back for all purchases, usually between 1% and 2%.
Bonus category cash back cards typically reward some purchases, like groceries or dining, at a higher rate, while rewarding general purchases at 1%.
Rotating bonus category cash back cards have dynamic bonus categories that automatically change or allow you to select a different bonus category after a certain length of time.
See related:Â What is cash back?
Ways to redeem cash back
Depending on your card and issuer, you may have a variety of choices in how you redeem your cash back rewards. Some issuers even allow you to set up an automatic redemption, meaning your redemption would automatically initiate after a set number of days or after you earn a certain amount in rewards.
The most common ways to redeem cash back are:
A statement credit
A direct deposit to a bank account
A check
Gift cards
Merchandise
Redeeming cash back as a statement credit
One of the most common ways to redeem cash back is as a statement credit. A statement credit is money credited to your account that reduces your card balance. For example, if you were to spend $1,000 with a card that offers 1.5% cash back on every purchase, youâd earn $15 in cash back rewards; and if you were to redeem this cash back as a statement credit, your balance would decrease by $15 to $985.
Blue Cash Preferred® Card from American Express, for example, requires you to have earned $25 in cash back before you can redeem as a statement credit.
The Chase Freedom Unlimited®card lets you redeem rewards as a statement credit in any amount, anytime.
Once youâve met your cardâs redemption requirements, you can simply choose a statement credit as your preferred cash back redemption.
Redeeming cash back as a check or direct deposit
A slightly smaller number of credit card rewards programs let you redeem your rewards for âtrueâ cash back in the form of a check or direct deposit to your bank account. Claiming your cash back in this way gives you a bit more leeway since you can save or spend your rewards however you like instead of having them âlockedâ into a particular card account.
As with statement credits, the requirements for requesting a check vary from card to card, with some issuers requiring you to have earned a minimum amount of cash back before you can request a check and others imposing relatively few restrictions.
Direct deposits tend to be a bit trickier across the board, especially if you donât already have a banking relationship with your credit card issuer.
The Bank of America® Cash Rewards credit card, for example, will only let you redeem cash back as direct deposit if you have a checking or savings account with Bank of America.
The Citi® Double Cash Card lets you redeem your cash back as a direct deposit only if you have a linked Citi account or a checking account from which youâve paid a Citi credit card bill at least twice. While the Double Cash card requires you to have earned at least $25 in cash back to redeem as a statement credit, thereâs no minimum to redeem as a direct deposit.
Wells Fargo Cash Wise Visa® card lets you claim your cash back via an ATM (in $20 increments only) if you have a Wells Fargo Bank account.
Automatic cash back redemption
Along with manually requesting a statement credit, check or direct deposit, a number of cards allow you to set up automatic cash back redemption. If your card allows automatic redemption, your cash back is generally distributed at set times or after youâve earned a certain amount.
The Capital One Quicksilver Cash Rewards Credit Card and, for example, allow you to schedule automatic cash back redemption via statement credit or check at a set time once per year or once youâve reached a cash back earnings threshold ($25, $50, $100, $200, $500 or $1,500).
Even some cards designed for credit-builders, like the Credit One Bank American Express® Card, allow automatic redemption as a statement credit, offering those looking to improve their financial habits a âset-it-and-forget-itâ cash back savings tool that will periodically knock off a chunk of their credit card balance.
Travel, gift cards and merchandise on an issuerâs online portal
Most credit card issuers also give you the option of redeeming your cash back through a rewards portal for online shopping or as gift cards to select department stores, restaurants, video streaming services and more.
The Discover it® Cash Backcard, for example, lets you redeem your cash back for gift cards from shopping partners once youâve earned $5 in cash back (gift cards range from $5 to $200, in increments of $5).
The Amazon Prime Rewards Visa Signature card*lets you redeem your points for purchases on Amazon.com, as a statement credit or deposit, or for gift cards and travel â all at a rate of 1 cent per point.
Having the option to use your rewards for travel allows you to enjoy the benefits of travel rewards with a cash back card and is especially common among cash back cards that use points or allow you to choose between cash back and points.
The Chase Freedom Unlimited is a great example. You can earn unlimited cash back at a rate of 5% cash back on every purchase, which translates to 1.5 points per dollar if redeemed for travel in the Chase Ultimate Rewards portal.
Similarly, the Citi Double Cash Card lets you transfer your cash back to Citi ThankYou Rewards and redeem for travel rewards, as well as gift cards, merchandise and other purchases through the Pay with Points program.
Cash back redemption options on popular rewards cards
As you can see, cash back redemption options vary considerably from issuer to issuer and card to card. Hereâs a closer look at how cash back redemption breaks down with some of the most popular cash back credit cards.
Card
Redeem as a statement credit?
Redeem as a check?
Redeem as a direct deposit?
Blue Cash Preferred® Card from American Express
Yes (once youâve earned $25 in cash back)
No
No
Bank of America® Cash Rewards credit card
Yes (once youâve earned $25 in cash back)
Yes (once youâve earned $25 in cash back)
Yes (into a Bank of America checking or savings account, once youâve earned $25 in cash back)
Capital One Quicksilver Cash Rewards Credit Card
Yes, anytime
Yes, anytime
No
Chase Freedom Unlimited®
Yes, anytime
Yes, anytime
Yes
Citi® Double Cash Card
Yes (once youâve earned $25 in cash back)
Yes (once youâve earned $25 in cash back)
Yes (to a linked Citi savings or checking account or to a checking account from which youâve paid your Citi credit card bill at least twice)
Discover it® Cash Back
Yes, anytime
No
Yes
Best cash back redemption options
With all those options for redeeming for cash, which one is best?
The key point to consider is whether your rewards lose any value when redeemed in a certain way. You want to make sure you are getting the most value back, so be careful if you redeem for merchandise, which can be worth less than rewards redeemed for straight cash.
That said, unless your issuer offers a bonus for claiming your rewards as a statement credit instead of âtrueâ cash back, you should simply stick to whichever option is most convenient.
One drawback to cash rewards is they often donât feel like actual rewards because they get swept up into your ongoing finances. If that bothers you, you might consider taking note of how much you are receiving in cash rewards, then rewarding yourself by spending that amount on something you want, so that you feel like youâre getting a reward.
Either way, thatâs the best aspect of cash back rewards: Itâs your decision.
Choosing the best cash back credit card for you
Your redemption options are just one consideration when choosing a credit card. Consider these factors:
Bonus categories
When shopping around for cash back cards, find the card that will work the hardest for you, not the other way around. In other words, a cash back rate of 5% at restaurants is great, but not if you rarely eat out. Bottom line: Find a credit card that matches the largest portions of your budget.
Also, be honest about how much thought you want to give to your credit card. If you prefer a âset and forgetâ approach, a flat-rate card is a better choice than a rotating bonus category card.
Annual fees
With so many great no annual fee cards, you might wonder why you would ever get a card with an annual fee. But often, the rewards rates are so much better that it actually makes sense to get the card with the annual fee. For example, comparing the Blue Cash Everyday® Card from American Express and the Blue Cash Preferred® Card from American Express, we found that consumers who spend more than $3,200 annually at U.S. supermarkets ($267 per month) were actually better off with Blue Cash Preferred, which has a $95 annual fee.
From redemption options to bonus categories, each cash back card is designed for a different type of consumer. If you havenât found your perfect match yet, try our CardMatch⢠tool, which can deliver personalized credit card offers in seconds with no impact on your credit score.
All information about the Capital One Savor Cash Rewards Credit Card and the Amazon Prime Rewards Visa Signature Card has been collected independently by CreditCards.com. The issuers did not provide the content, nor are they responsible for its accuracy.
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VFTW notes that the SFO expansion would bring the size to nearly 16,000 square feet and the SEA ‘expansion’ is a relocation that would go from 4,500 square feet to 13,700 square feet in space.
