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Why Card Networks No Longer Require Signatures

The Evolution of Payment Security

By Polly Corless, Vice President of Operations, Catalis Payments

In the digital age, payment methods have rapidly evolved, with traditional signatures on credit card and debit card receipts becoming increasingly obsolete. Card networks, such as Visa, Mastercard, American Express, and Discover, have recognized the need to adapt to changing consumer preferences and habits, technological advancements, and evolving security measures. Consequently, the networks have phased out the requirement for signatures on credit and debit card transactions. Mastercard announced the elimination of the need for signatures in October 2018 (Signing Off: Mastercard Moves Beyond Signatures Worldwide) and Visa followed with an announcement in August 2020 (Sunset of Retrieval Requests and Changes to Visa Easy Payment Service After Making Signatures Optional for All Transactions). This blog post delves into the key reasons behind this significant shift and highlights the various factors that have rendered signatures unnecessary in today’s payment landscape.

The Rise of Chip Technology:

One of the primary reasons behind the elimination of signature requirements is the widespread adoption of chip-enabled cards, also known as EMV (Europay, Mastercard, and Visa) cards. Unlike traditional magnetic stripe cards, chip cards are equipped with an embedded microchip that generates a unique code for each transaction. This dynamic code provides enhanced security against fraud. Chip technology has significantly reduced the reliance on signatures as a means of verifying the authenticity of a transaction.

Advancements in Fraud Detection:

Card networks and financial institutions have invested heavily in advanced fraud detection systems that employ artificial intelligence and machine learning algorithms. These systems analyze transaction patterns, cardholder behavior, and other data points to identify potentially fraudulent activities in real time. As a result, the reliance on signatures as a post-transaction verification method has diminished since fraudulent transactions can be detected and flagged earlier in the process.

Strong Authentication Methods:

In addition to chip technology, the payment industry has witnessed the emergence of robust authentication methods to combat fraud. Two-factor authentication (2FA) techniques, such as one-time passwords (OTPs), biometric authentication (fingerprint or facial recognition), and tokenization, offer more secure ways to validate cardholder identity. These methods provide a higher level of security compared to signatures, which can be easily forged or overlooked.

Expediting the Checkout Process:

In today’s fast-paced world, consumers demand convenience and efficiency when making purchases. The requirement for signatures often slows down the checkout process, especially in high-volume retail environments. By eliminating the need for signatures, card networks have effectively streamlined the payment process, enabling quicker transactions and reducing waiting times for customers.

Transition to Online and Mobile Payments:

The rapid growth of e-commerce and mobile payments has further contributed to the diminishing relevance of signatures. Online transactions typically require the input of a card’s CVV (Card Verification Value) code, which acts as an additional security measure. Mobile payment solutions, such as digital wallets and contactless payments, utilize encryption, biometrics, or tokenization to secure transactions, eliminating the need for signatures altogether.

While signatures were once considered a primary means of preventing fraud, they are now regarded as a relatively weak form of verification. They can be easily forged, and the burden of verifying the signature falls on the cashier, who may not be adequately trained to detect fraudulent activity. The shift towards more sophisticated security measures, such as EMV chips, 2FA, and advanced fraud detection systems, has rendered signatures less effective in combating fraud and protecting consumers.

The elimination of signature requirements by card networks signifies a significant evolution in payment security and reflects the changing landscape of consumer behavior and technological advancements. Chip-enabled cards, strong authentication methods, advanced fraud detection systems, and the rise of online and mobile payments have collectively contributed to the diminishing relevance of signatures. While signatures may still be used for specific purposes or in certain regions, the trend is clear: card networks are prioritizing more secure and convenient payment methods, improving the overall payment experience for consumers while maintaining stringent security standards.


Incorporating Catalis’ secure and flexible payment solutions can greatly benefit your government agency and its constituents. If you’re interested in learning more about how our solutions can help streamline your payment processes, increase revenue collections, and improve cash flow, contact us today to schedule a consultation.

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