It may seem odd on the surface in this day and age of identity thefts, but Visa has decided to create a program called No Signature Required. The program will be offered to 800 different types of retailers and is limited to transactions under $25. The types of retailers included on the list are hair salons and sporting goods stores.

The reason Visa has decided to open this program is that not requiring a signature on small transactions can increase the speed of checkout at retailers. The program has been used on a limited basis since 2003 and a Visa company spokesman said there was not an increase in identity thefts as a result of that implementation. That is why Visa believes an expansion of the program should not add to the identity theft problem.

Not everyone agrees though. The accounting firm of Sklar, Heyman & Co. has a fraud and financial forensics division. Jeffrey Sklar says that consumers are more vulnerable to identity theft when signatures are not required on purchases. Many retailers compare signatures on receipts to signatures on credit cards to validate the card user. In addition, another piece of ID is requested. This greatly reduces the opportunities for identity theft.

Mastercard has a similar program called Quick Payment Service Program. It has been in operation since 1991 and the list of retailers includes grocery stores and convenience markets and many others. The Quick Payment Service Program has a transaction limit of $15 to $50.

Both Visa and Mastercard reason that thieves are generally not going to steal goods they cannot resell. They odds are much greater of a theft at an electronics store then at a restaurant. But in an interesting twist, the Visa program does include electronic stores but the $25 limit should stop any major purchases as long as signatures and ID are required by the retailer.

Many households do not take the time to closely check their credit card statements. Consumers are especially lax when it comes to questioning small charges. It can take hours to dispute a charge and a small questionable charge is simply not worth the trouble of disputing. In addition, one spouse may assume the other spouse made the charge.

The founder of the Identity Theft Resource Center located in San Diego is Linda Foley. She says the Visa and Mastercard programs make her nervous. She believes that once thieves learn the new Visa program is in place there will be an increase in the number of small identity theft cases.

Consumers need to be very careful when using their credit or debit cards. For example, in the case of debit cards it is important to make sure no one can see the PIN number entered. It is so easy to become an identity theft victim when someone can see the PIN number you enter. Some people leave their receipts behind at places like convenience stores too. If the account number is not hidden on the receipt, it is easy for a thief to use that account number and PIN. It is wise to always take your receipt with you even if you don’t want it and then shred it at home.

Time will tell if the Visa No Signature Required Program will be successful.

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