yes, it's to reduce fraud.

You don't want me to buy a ticket with your CC number by phone and get away with it do you? So they ask to see the actual card.

And yes, it can cause problems. This has been discussed before so use "Search" to find old posts.

The solution is to show them the card before check-in. At any ticket office (city or airport) so an agent can leave a remark in your file that it's checked.

This way, you don't have to worry about it on the day of travel.