Originally Posted by
tmiw
Considering manufactured spend (which is legal) looks a lot like what's usually done to cash out stolen cards (definitely illegal), it's not surprising that stores want to clamp down on it. Of course, it stems from a misunderstanding of the payment network rules, which state that only chip cards that are swiped in a non-chip capable terminal push liability on the merchant.
Buying a $100 VGC has nothing to do with MS. It is very common during holiday time. It is a store policy to check ID and card for any GC >= $100.
There are still a lot of credit card frauds going on. I guess most are from the traditional CC frauds, but stores are very nervous about its payment system. I'm sure the NFC and contactless technology makes it safer, but the stores do not know that. They still prefer to check ID and the physical credit cards.
Also, the POS may not work properly, the phone may not get the mobile signal etc. The shoppers behind you would stare at you for holding the lines. I'll only use my phone if I get any benefits. Otherwise, most people still prefer the old light plastics....