by If you also use a credit card, you may have noticed that some cards have a small strip on the back that says – Authorized signature, not valid unless signed. On some cards, Show ID is written instead. Earlier this strip was provided on almost every card, but now with time this strip is disappearing in new credit cards. Over time, banks and credit card companies have stopped issuing this strip. But do you know why this signature strip was given on the back of the card and what was its use? If you use a credit card and this question has ever crossed your mind, let’s find out why. Also know why companies put a space after every four digits between credit/debit card numbers.
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Why was there a signature strip on the back of the card?
In fact, earlier banks and credit card companies verified every transaction with the customer’s signature. On the one hand, the use of cards reduced the transaction time, on the other hand, the signature led to double verification. But with the passage of time it started showing many drawbacks, after which PIN and chip facility was introduced. One of the biggest problems with signing the back of a credit card was that when someone got hold of the card, they had an original copy of the customer’s signature, which could easily be copied with a little practice. Because the card was always likely to be lost or misplaced, it was not secure.
Its need began to disappear with time
When PIN number started being used in place of signature and chip facility was introduced, the level of security increased manifold. Because on the one hand the PIN set by the customer on the card was not easy to find, on the other hand, through the chip provided in the card, a security code was generated which was different every time.
Thus, the use of signatures on cards for verification declined over time and gradually card companies stopped issuing signature strips on the back of credit and debit cards. But some companies still provide a small signature strip on the back of the card. Also, there is one thing about plastic money (credit and debit cards) that many people worry about.
Have you ever thought about credit cards?
Have you ever wondered why there is a gap between the numbers given on credit cards and debit cards? Credit cards usually have a unique 16-digit number called a credit/debit card number. Usually a gap is given between these numbers after every four digits. While entering details for online transactions, new users sometimes enter a space after every four digits. They think maybe this space is part of a credit card number. However, that is not the case.
Why is there a gap in the credit card number?
The only reason for having a gap between card numbers is to make these long numbers readable. Because the 16-digit number itself is so long, there is always room for error when using it for online transactions. That’s why credit card companies and banks have decided to put spaces between card numbers. This not only reduces the chance of error, but also makes the number easier to read. Credit cards, if used wisely, offer you many reward points and benefits. But if the information is incomplete, you may have to pay various charges for minor mistakes. So, always choose and use your credit card wisely.
