Don't show your ID when paying by credit card

Do not show your ID this Christmas shopping season when paying by credit card!

I've personally been asked, exponentially more over the past 6 months, and it seems to happen much more here at home (Edmonton) than any other city I've travelled to across Canada.

Here's how the conversation goes.

You present your credit card for payment. Sales clerk - "Can I please see a piece of ID?". "Why?" you ask. "Well, it's actually to protect you...imagine if someone had stolen your credit card. It's our store's policy to protect you. By examining your ID, we know it's you."

Well, that's logical you surmise and even down right thoughtful. How Canadian of them!

Actually, it's not thoughtful at all, extremely dangerous and for their protection, not yours.

Here's why:

1. If the clerk is a would-be-thief or a hidden camera exists somewhere in the store recording your information (and this has been reported a number of times over the years in Edmonton), now the thief has everything they could possibly need to steal your total identity. If you whipped out your driver's licence for the clerk with your credit card, not only have you exposed your card number and expiry, but now possible crooks have your full name, address, drivers licence number and birth date thanks to that "caring clerk."

2. The stores asking for your ID say that they're really protecting you. Um, nope! They're protecting themselves. Here's why. Both VISA and MC stand behind you the consumer fully if your credit card is stolen - 100%. So, you're already protected if someone is making purchases with your card before you even realize it's missing. It's actually the store that's protecting themselves because if the purchase was made with a stolen credit card and the signature wasn't checked and didn't match up for example, VISA and MC may hold the merchant accountable and they'd be out the purchase - not you.

Lastly, a store may not refuse your purchase if you decide not to show your ID. I have, on a number of occasions, been refused and although I explained all of this to the store clerk and manager (OK, argued), they still refused my purchase with a credit card. In all cases, I have reported these stores to VISA/MC. Bottom line: A store is allowed to ask you to provide ID as a store policy, but you are not required to do so by VISA or MC which is clearly stated in their merchant account.

Enjoy your shopping this holiday season but please do so with care. That clerk may really believe she's protecting you as her manager requires her to do so, but protect yourself. Keep your identity safe even if it holds up the line.