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By LIZ PULLIAM WESTON
Checking ID For Credit Card Use: Is It Legal?
Dear Liz: I recently read that merchants aren't allowed to ask for customers' identification when processing credit card transactions. But this has become incredibly common. In fact, I can't remember the last time that I wasn't asked for ID when using a credit card. Is it really illegal?Answer: "Illegal" is the wrong word, since this involves a contractual issue between the merchants and credit card issuers.
Visa, MasterCard, Discover and American Express all prohibit merchants that accept their cards from requiring identification. The only thing a clerk is supposed to check is that the signature on the back of your card matches the signature authorizing the transaction.
Merchants' contracts with Visa and MasterCard are supposed to prevent them from even asking for ID. American Express and Discover don't prohibit asking but strongly discourage it.
Clearly, these policies are widely ignored. Merchants often wind up stuck with the bill for credit card fraud, and asking for ID is seen as one way to reduce their losses.
How much of a stink you want to make about it, though, is up to you. You can refuse to provide ID, but you risk not being able to complete your transaction. Often, the clerk is only following a boss' orders, and even the boss may be unaware the store is violating its merchant agreement.
You also can notify your credit card issuer of the merchant's violation. Perhaps if enough people speak up, merchants will change their ways.
Dear Liz: How do you find a lost pension? I worked for a company from 1981 to 1990 and paid into a pension plan. Both the company and the pension plan have changed hands (and names) since then. I recently became disabled and Social Security informed me that I am due several hundred dollars a month from this pension. But the address Social Security listed for the company is no longer valid. My Internet searches haven't gotten me anywhere. I could really use the extra funds now.
Answer: Check out the Pension Benefit Guaranty Corp.'s pension search directory at www.pbgc.gov/search. You can search by your last name, by the company name and by the state where the company was headquartered to see whether you are one of the 32,000 people owed $133 million in unclaimed pension benefits that have been entrusted with the PBGC.
If not, you'll want to get a copy of the PBGC's booklet “Finding a Lost Pension,” which is available on its website (www.pbgc.gov/docs/Finding _A_Lost_Pension.pdf) or by writing the PBGC Communications and Public Affairs Department,
Dear Liz: I'm wondering how credit cards that I do not activate are reported on my credit reports. I just received a replacement Visa card from a company that eliminated its rewards program; therefore, I don't want to use the card anymore. If I don't activate the card, will the card and the credit limit continue to stay on my credit report and have a positive effect on my already high credit scores? Or does the company at some point realize the card was never activated and close the account, which could have a negative effect on my scores?
Answer: The answer isn't either/or, it's "both."
When you're approved for a credit-card account or a replacement card is issued, the account is reported to the credit bureaus. You can't actually use the card until it's activated, but the account will show up on your credit reports regardless of whether you ever call the toll-free activation number.
If you don't use a card, however, you do run the risk that the issuer will close your account. Whether that's a big deal depends on your credit situation. If you have few cards and low scores, you probably don't want to risk losing an account. If you have high scores and several other major credit cards, though, having an account closed shouldn't have a large or lasting effect on your credit.
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© 2008, No More Red Inc. Liz Pulliam Weston is author of “Easy Money: How to Simplify Your Finances and Get What You Want Out of Life.” She regrets that she cannot respond personally to inquiries, but questions for possible inclusion in her column may be sent to 3940 Laurel Canyon Blvd., #238, Studio City, CA 91604, or use the “Contact Liz” form at her website, www.lizweston.com.
