Back-of-Card Signatures No Longer Required, Mastercard Declares

Credit unions and other card issuers may be adjusting their card designs soon, because Mastercard will no longer require signatures on the backs of its cards, the company has announced.

Starting in April 2019, Mastercard issuers around the world will no longer have to put a signature panel on the backs of their Mastercard products, according to the company.

The news follows Mastercard’s announcement a year ago that it would abandon requiring cardholder signatures at checkout. That change took effect last April.

“With modern, advanced forms of authentication now available, removing the requirement for signature capture at the point of sale and now signature panels on Mastercard cards is an important step in support of our digital evolution,” Mastercard EVP of U.S. Merchants and Acceptance Linda Kirkpatrick said. “Issuers, merchants and cardholders will benefit from this change as faster, safer options improve satisfaction and increase sales.”

New data suggests that many consumers have already abandoned the signatures on the back of their cards anyway. In September, a survey of over 1,200 adults found that only 40% had actually signed the back of their cards. A third of those people said they didn’t see the point of signing the back of their cards, and more than half said they thought their cards were just as secure without signing the backs. Two-thirds said they wanted biometrics to replace signatures, passwords and PIN codes when paying with their cards.

Eliminating signatures is an important part of the shift to more secure technologies such as EMV and contactless payments, Mastercard said.

“We see this as a win for all. The investments we’ve made in technology like artificial intelligence and biometrics are what’s powering this next step,” Mastercard President of Cyber and Intelligence Solutions Ajay Bhalla said. “We believe our merchant and issuing partners everywhere will embrace the ability to deliver a simpler checkout experience while maintaining the highest levels of security.”

On Oct. 17, Mastercard also announced that it will enable token services on all cards by 2020. That move is intended to allow consumers to store card credentials with a merchant online without exposing actual card account details, the company said. It said it is working with a variety of payment processors and card issuers to convert cards on file into tokens.

Earlier this month, the card network also launched a digital bill pay platform that lets consumers view, manage and pay utility, rent and other bills without having to set up accounts with different billers. That product will link to The Clearing House’s real-time payments infrastructure. Some credit unions will come through partners such as FIS to test the technology in 2019 before launching, a spokesperson said.