Credit Card Authorization: Fill & Download for Free

This is an operational decision based on risk.Close your eyes and think for a moment what happens to that little piece of paper with your signature on it.Now, try to imagine...all of the credit card paying customers from the 9,462 company-owned Starbucks from all around the worldmillions of tiny slips of papers with signatures on them being created every day, virtually all of them useless (certain exceptions apply)the human effort (and their related costs) it would take to store, transport, organize and categorize them in such a way that would make it easy to find, in case one of those pieces of paper are actually neededThe easiest way to understand the reasoning behind this procedure is familiarize yourself with chargebacks. A chargeback is when a merchant receives notification from a credit card company claiming their customer is saying, "I never bought that."A hypothetical exampleSay you get your credit card bill at the end of the month. You examine all the charges or verify them against your receipts. You discover one item that appears to be a mistake. "Hey, I've never even been to [company XYZ]," you silently say to yourself. You contact the credit card company, disputing the charge. The credit card company generates a chargeback notice and sends it to the merchant. This basically means they have reversed the charge. The money that has been paid to the merchant for your credit card transaction has now been taken back. The merchant is now without the sales proceeds and the inventory you presumably took. They are mad.The burden now falls upon the merchant to "prove" the legitimacy of the charge. They research the item, going through mountains of paper to locate the one document that can reverse the 'reversal' (meaning, get back the money they believe is theirs). That document is the credit card receipt. It has "your" signature on it, stating that you have authorized this charge. It is their "get out of jail for free" card, if you will. Then merchant then sends a photocopy of the receipt back to the credit card processor who, in turn, authenticates the charge. If satisfactory proof (the signature appearing on the credit card receipt matches the signature they have on file) has been provided, they must now reverse the chargeback and, in turn, communicate to you (the credit card holder) the resolution. If proof has not been found, they must also communicate to you. Either way, it is an administrative headache for the credit card company to deal with the issue.All of this administration between credit card company and merchant involves human resources, which translates to money -- lots and lots of it. It is burden to the credit card processor, to the merchant and to you. Nobody wants to deal with it, yet they must. There is simply no other choice. Ignoring you is not an option.Now consider all of the above plus one other fact (i.e. the 'kicker')The charge is for $2.00, perhaps the price of a cup of coffee.$100 in labor has now been spent trying to resolve your $2 item (yeah, I know, "it's the principle.") Obviously, this makes no business sense.So businesses establish "thresholds" that examine the probability of risk (i.e. a bad credit card transaction) and then attempt to balance that with the potential costs of processing chargebacks. This threshold is the dollar cutoff that best represents the point where they calculate it is no longer worth it to collect signatures on 100% of their credit card transactions.Sure, they'll have losses but hopefully those losses represent less money than the payroll dollars they would have spent on research. If that turns out not to be the case, they will raise the threshold. It is an inexact science.From an operational perspective, not requiring signatures at the checkout stand speeds up processing (no checking of IDs against credit cards, if that is their procedure), thereby improving customer satisfaction/lowering customer frustration."John, I need you to pull me 27,275 sales receipts to resolve these chargebacks we received this morning. Make it snappy, okay?"The bottom lineCompanies choose a certain 'no-signature-required' threshold for their credit card transactions based upon historical losses, the average price point of their transactions and administrative costs needed for sales audit and chargeback functions. They try to balance risk of losses against costs of administration. When it no longer makes any financial sense to do so with lower price points, they opt not to collect a signature.

I am working in a five star hotel and think I can give the correct answer.Any five star hotel doesn't have any problems with any guest if they provide proper identification proof and are paying all the charges. Until they are involved in any suspected activities in regard to Security and safety of hotel and it's guest.While going to any five star hotel, you need to have a booking or reservation by your name. When you are checking in to the hotel you need to show photo ID proof issued by government also the person sharing the room need to have a valid ID proof and another thing is credit card authorization for ensuring that you will pay the bills. After this procedure hotel doesn't have any questions for you. Do whatever you want in your room.In almost all five star hotels you can enjoy the freedom and privacy. Hotel just take the ID proof of the visitor.Edit - Great to see my business growing :DAdding additional information regarding the questions asked in the comments section.All this information is strictly in regards to Branded chain hotels. only the big ones.A credit card authorization is a kind of guarantee for the hotel that their money is sure. In 99% cases hotels prefer you to carry a credit card,In maximum case you should have a prior reservation or booking even if you have done it online that same Morning . Walk in guest are less preferred.No 5 star hotels have cameras in the room or any private area. They have CCTV camera in entire Public space for the safety and security of the Hotel and the guests.Branded five star hotels are owned by may be local owner but are managed by a team of well educated and experienced professionals from Top management to a down the line staff.(I started as room cleaner after doing hotel management with 89% marks)They cater to guests from all over the world and have to follow International standards so they can't deny if you have a valid ID proof and are paying.No hotel in this category would like to police Approaching the hotel and the guests as it ruins the hotel reputation in front of International guests. So Hotels do only valid things and this is totally valid for two adults to go together with own consent , that's why they don't ask you questions.I hope that the information provided solves all the concern raised below,For any other questions related to staying in a Five star Hotel, everyone is welcomed.

There are two basic reasons.The most often quoted reason is credit cards allow you to spend tomorrow's money today. It's also the stupidest reason.The second reason, and by far the most intelligent reason, is that credit cards offer the consumer benefits and protection that you will never get from a debit card. Never.Every time I make a purchase with my Citibank card, I get at least a 2% cash rebate. If I take the family out to eat, Barclays gives me a 4% rebate. Try that trick using a debit card. If I travel abroad, I pay a foreign transaction when using my debit card. With my credit card there is no fee and I still even get a cash rebate.If you lose your debit card and / or someone uses it to obtain goods, services or cash without your authorization, you are out that money for at least several days until your bank places that money back into your account while they investigate. That you need that money now to pay your mortgage is just tough luck. That doesn't happen with a credit card.If you have a dispute with a merchant that you paid with your debit card, you have no protection. With a credit card, you have chargeback rights. Several years ago I ordered a tube of gold coins from a very reputable merchant that I had successfully dealt with in the past. They mail the tube of coins to me via Registered Mail. But I never received them. I contacted the merchant and they showed me where USPS confirmed delivery and received a signature. But I never received anything. Had I paid using my debit card, I could only bend over and grab my ankles. $20,000 lost.But I didn't use my debit card. I paid with my credit card and immediately filed a dispute with my bank. The chargeback ended up in the MasterCard arbitration system and I won. Just because the USPS says you got something doesn't prove it actually happened. It was the merchant who had to bend over and grab their ankles. Two years later my postman is in prison. Postal Inspectors had raided his home and found hundreds of mail pieces there undelivered. One was the package with my coins.Using a debit card is just plain stupid.Update: There was an interesting presentation sponsored by Google given by Frank Abagnale. While most of the presentation doesn't pertain to the topic at hand, at about 40" he replies to a question concerning debit vs. credit cards.Frank Abagnale: "Catch Me If You Can" | Talks at GoogleDebit cards are, he states, "the worst financial tool ever given to an American consumer." He then goes on to explain why.