Signature Event for Credit Cards

Signature Event for Credit Cards

All four major credit card brands in the U.S., Visa, MasterCard, American Express, and Discover, will drop the signature requirement for purchases in April, 2018.

While a $500-$1,000 active chip reading terminal is needed for merchants to process a signature-free card at check out, the expense is well worth the liability for card fraud, not to mention the added benefit of getting a faster and easier checkout process.

This post is based on the article, How the End of Credit Card Signatures Impacts Small Businesses, by Eric Rosenberg, February 9, 2018.  Image source: Erik Isakson/Blend Images.

Discussion Questions
1. How will a service blueprint for making credit card payments differ after the end of signature requirement?

Guidance: Focus on the shortening of the transaction. After the card is read and the payment is approved, the transaction is completed, saving customers time as they no long need to sign for the purchases.

2. Why will waiting lines at point-of-sale terminals be shortened when credit card signatures are not required?

Guidance: Service time is shortened because a signature will no longer be required to complete the checkout process.