No signatures for small credit card purchases

Convenience Store News reports that credit card comapnies are moving towards not requiring signatures for purchases of less than $25. Customers in a rush at movie theatres, pharmacies and convenience stores now do not have to wait to sign a receipt for these small everyday purchases. Consumer groups are not happy with the move as the amount of small purchases has significantly increased in the past few years and this move could do further damage to consumers already increasing debts.

CardWeb.com estimates that this year, consumers will use Visa cards to buy $60 billion worth of items that cost less than $25 each, approximately 11 times more than the rise from 2000.

"Not having to sign is a huge convenience for consumers and a critical element" to grow small-dollar purchases on credit cards, Elizabeth Buse, an executive vice president at Visa told USA Today.

Retailers also benefit from the new no-sign environment, according to credit card companies, the stores can serve more consumers and see higher overall sales. "People will spend more if they come in with a card versus cash," said Gareth Forsey of MasterCard Worldwide.