A bank signature card is a document that exists primarily to verify an account holder’s signature. Typically, a customer will sign a signature card when they open a new account. The bank then keeps the card on file and uses it to check the validity of the customer’s signature on checks and other documents.
Banks and credit unions also use the signature card to verify who is authorized to access the account (or even information about the account) and the required number of people that need to sign for certain transactions.
Learn more about the purpose of bank signature cards, why they are still used, and electronic alternatives to traditional signature cards.
Key Points
• A bank signature card verifies an account holder’s signature and records key account details.
• It helps prevent fraud by authenticating signatures on checks and withdrawal slips.
• Signature cards specify who can access the account and the required number of signatures for transactions.
• Alternatives to signature cards include PINs, passwords, two-factor authentication, and biometric verification.
• To change information on a signature card, visit the bank or contact customer service.
Definition of a Bank Signature Card
A bank signature card, also known as a signature form, is a document that financial institutions use to authenticate a customer’s signature for personal and business bank accounts. The account holder typically signs a signature card when they open a bank account or they add or remove account holders. These forms are also used to collect information about the person requesting the account and specify who may withdraw funds from it. Any co-owners or authorized users of the account must also sign the signature card.
Though paper signature cards are not legally required, many banks still use them. If you open a new bank account in person, you (and any co-owners or authorized users of the account) may be asked to physically sign a signature card. The bank then keeps the signature card on file, where a bank employee can access it any time they need to validate your (or another user’s) identity when servicing your account.
If you open a bank account online, you may be asked to print out and sign a signature form, then mail it or you may be able to submit your signature electronically to the bank.
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The Purpose of Bank Signature Cards
Bank signature cards are essentially designed to help keep your account safe. Here’s a look at the main reasons why signature cards are used.
• Record the names of the account holders: A signature card shows who owns the account. If an account holder adds or removes someone from the account, they will typically need to fill out a new signature card.
• Capture the customer’s signature: When an individual presents a check or signs a withdrawal slip, the bank can compare the presented signature with the signature on the card to make sure that it’s valid. This process may be done manually or using signature verification software.
• Specify how many signatures are required for certain transactions: For a married couple with a joint account, for example, the signature card may state that only one of their signatures is needed to make a withdrawal. For a business account, the card might stipulate two authorized signatures are required for checks or withdrawals over a certain dollar amount.
• Put limits on what authorized signers can do: Signature cards allow the account owner to determine what account information an authorized user can access, as well as what type of transactions they can make with the account.
Required Bank Account Signature Card Information
When filling out a bank signature card, you’ll need to provide some basic personal information. If there is more than one signer, the card must include the details of all signers. Here’s an example of the most common elements you’ll see on a bank signature card:
• Name of account holder
• Date of birth
• Contact information (e.g., address, phone number, email)
• Social Security number
• Driver’s license number
• Account details (including the type of account being opened, account number and routing number)
• Signature
• Date the card was completed and signed by account holder
How to Apply for a Signature Card
Applying for a bank signature card is usually part of the process when opening a new bank account. Here’s a look at the steps involved.
• Contact the bank: You may be able to open a new bank account online or you may need to visit a local branch.
• Provide personal ID and information: The bank will require a valid, government-issued photo ID, such as a driver’s license or a passport. You’ll also need to provide your birthdate, Social Security number, and contact information.
• Provide identification details for any other applicants.
• Make any required initial deposit: Some banks require a minimum opening deposit, while others allow you to open an account without making a deposit.
• Complete the signature card: You may be asked to provide your signature on the signature card or form, either in person or (if you’re applying for an account online) by printing out the form, signing it, and sending it via regular mail.
Alternate Options to Bank Signature Cards
With advances in technology, banks now have additional methods to bank signature cards for verifying transactions and securing accounts. Some of these alternatives offer greater convenience, while others provide enhanced security features.
• PINs and passwords: Personal identification numbers (PINs) and passwords are common in online and mobile banking. Instead of relying on a signature, customers input a secure PIN or password to authorize transactions.
• Two-factor authentication (2FA): To enhance security, some banks use two-factor authentication, which requires a second form of verification in addition to the password or PIN. This typically involves sending a verification code to the account holder’s phone or email to confirm their identity before allowing them to access account information or complete a transaction.
• Biometric verification: Some banks are adopting biometric security measures, such as fingerprint scans, facial recognition, or voice recognition. These methods add a layer of security by linking account access to unique biological traits, which are much harder to forge than signatures.
Recommended: How to Secure Your Bank Account From Hackers
The Takeaway
A bank signature card is a form that records your signature when you open an account and ensures the bank can authenticate transactions and withdrawals. A signature card also contains key details about your account, including the type of account, account number, authorized users, and who needs to sign for certain transactions. If you add or take someone off your account, you’ll need to update your signature card.
Signature cards have been a key part of banking practices for decades and they continue to be an important tool in preventing fraud and ensuring that only you (and any other authorized users) can access your hard-earned money.
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FAQ
How do you change your information on a bank signature card?
To change information on a bank signature card, you need to visit your bank in person or contact customer service. Typically, the bank will require you to fill out a new signature card with the updated information, such as a new address, name change, or adding/removing authorized signers.
Depending on the type of change, you may need to provide identification and supporting documents. Some banks, such as online banks, may allow you to submit copies of your documents through an online upload, or by mail or fax.
Can you electronically sign a signature card?
These days, many banks (particularly online banks) collect electronic, rather than physical, signatures. Your bank of choice will let you know how to provide the signature they need, be it with pen and paper or online using a digital signature platform.
Can you get a copy of your bank signature card?
You may be able to request a copy of your bank signature card from your bank. The process usually involves contacting the bank’s customer service or visiting a local branch. Some banks will not provide customers with copies of their signature cards, however. If you need official documentation from the bank regarding who is listed on the account but can’t get a copy of your signature card, you can typically request a letter on official bank letterhead to verify this information.
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