When using a credit card for consumption, the bank will need to verify the identity of the cardholder. There are two main methods of consumption verification, one is signature, and the other is this "password plus signature". That is to say, if you set a transaction password when applying for a credit card and signed the name on the back of the card, then when you swipe the card to make a purchase, you must enter the transaction password and sign the purchase form to complete the purchase.

The advantage of "signature + password" verification is that it is more secure than using a signature alone. Once the credit card is lost, the risk of it being swiped is very small. The disadvantage is that once the credit card is stolen, the consumer will bear full responsibility, and the bank will no longer be liable for compensation.

Note: This method is mainly based on password verification. Once the password of the card swiper is correct, even if the signature does not match, the consumer will be fully responsible for the loss of the stolen card.

Is password + signature safe?

Bankers said that they should be treated separately according to the card environment and the type of credit card used. For example, the foreign credit card market is relatively mature and does not require a password. However, in China, not all credit cards of all banks have card loss protection, and cardholders should still set up a transaction password. For credit cards that do have lost card protection, cardholders can choose not to set a password.