Explore the Concrete Beach

Sometimes people ask me questions about their bank accounts because I do work for a bank, but I work on the corporate side of thing, but I do learn a thing or two that I find beneficial and want to pass it along to people as I find it informative.

Someone asked me once if they should sign for their debit card purchases or just use it like a credit card. At the time I really didn’t know and I typically never sign for debit card transaction, because if something would happen I am protected thru the bank anyway.

They also said their bank encouraged signing for all purchases because it was safer. Well to tell you the truth that’s not the case. Signing for your purchases is not safer nor is it worse then using your pin number. It’s about the same. Does the cashier ask to see you ID and signature al the time when you sign?

Yeah, I didn’t think so, plus if you would look at my signature it’s different every time I sign a document.

Here’s the truth why a bank would say it’s safer and in this case I will be using JP Morgan Chase as this was an article in American Banker about them asking customers sign for transaction made on their debit card.

• JPMorgan Chase is urging its debit card customers to sign for their purchases rather than use their PINs. JPM’s pitch is that signature transactions are safer for customers. In reality they’re not. But they are more lucrative for JPM. On a $100 PIN transaction, JPM makes 5 to 10 cents from the merchant. A signature transaction for the same amount generates a $1 merchant fee.

So you see it’s not because it’s safe, it’s because the bank makes more for those signed transactions from the merchant.

Just thought I should pass that along, especially if you are making a debit card purchase from a small locally owned mom and pop type store.