Effective April 13, 2018, Mastercard is updating their rules to allow merchants in the United States and Canada the option to choose whether to collect a cardholder’s signature on a transaction receipt or electronic signature capture device in a card present environment for any transaction amount. Mastercard reports currently more than 80% of their transactions in North America don’t require a cardholder signature at checkout today under their Quick Service Payment program. The expansion of this practice means obtaining cardholder signatures will be optional for all face-to-face transactions.
Mastercard made this announcement based on consumer and merchant feedback requesting this change in order to provide a faster, streamlined, and more consistent checkout experience. With ongoing enhancements to payment technologies such as chip cards, biometrics and digital platforms (ex: Masterpass) that utilize sophisticated methods to validate cardholder identity, there is no longer the need to capture signature.
Eliminating the requirement for signature collection allows merchants the option to discontinue collecting signatures for all transactions or to set thresholds for signature collection at their discretion. Merchants may adjust terminal settings to suppress the signature lines or prompts but CVM settings should not be changed.
Mastercard has modified their chargeback rules to no longer list proof of signature as a qualification for chargeback representment.
Vantiv is working with Mastercard to verify changes to their chargeback rules, receipt requirements, and any other considerations if a merchant chooses to adopt this practice. Vantiv has also reached out to other networks in an effort to understand their position on a similar change in their rules. We will communicate further details upon receiving them from the networks.