Experts Say Most Merchants Can't Require ID With Credit Card Purchases
NEW YORK(CBSNewYork) -- With 97 shopping days left until Christmas, it's about time for credit card use to go into overdrive.
When you swipe, the clerk may ask to see your driver's license or ID, but in most cases they're not supposed to.
Wayne Van de Walker told CBS2's Emily Smith that the common request makes him uncomfortable.
"With all the ID theft that's going on it's just one of those things, I prefer not to show my information," he said.
Security experts said the information on your driver's license could be enough to steal your identity.
It's a worry for Van de Walker because he prefers to pay by credit card, because of the protections.
"You don't know who you're dealing with on the other side of the counter," Van de Walker said.
Even if the clerk asks, you don't have to hand over your ID, explained Sean McQuay from Nerdwallet.
McQuay said that both Mastercard and Visa actually prohibit merchants from requiring ID as a condition for accepting their credit cards, provided the card is signed on the back.
American Express discourages stores from asking for ID, but Discover said its merchants are free to request ID, and may require it.
"Discover states, if there's any concern, and the back of the payment cards is not signed, then the consumer needs to present two different forms of ID," McQuay explained.
Credit card security is a concern following major data breaches at Target, Home Depot, Neiman Marcus, and PF Changs.
Many Target stores now accept credit cards with chip technology and with new scanners, shoppers avoid handing over their card at all.
So how should you respond if you are asked to hand over your ID?
McQuay suggests asking to speak with a manager and reminding them of your card's merchant agreement, it's something Van de Walker does every time. He just wishes he didn't have to.
"It's a little hard to carry around a merchant agreement," he said.
If you do hand your ID to a clerk, it's illegal for them to record any information.
