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Using Credit Cards for Age Verification: What You Need to Know

Using Credit Cards for Age Verification

Online transactions have intertwined seamlessly into our daily lives, from buying last-minute groceries to subscribing to streaming services to watch our favorite comfort show.

The rapid growth of digital payments has highlighted the crucial need to control access to age-restricted goods and services. Age verification has evolved beyond simple legal compliance; it is now an essential measure to protect vulnerable groups from exposure to harmful content and transactions.

One method that has gained traction is using credit cards for age verification. But how reliable is this approach?

Below, we take a deep dive into what credit card age verification entails, its pros and cons, alternatives, and industries that rely on it.

By 2024, an incredible 2.71 billion people joined the digital checkout frenzy, marking a 2.7% rise from the year before. And here’s the kicker – it’s predicted to skyrocket to 2.77 billion by 2025.

What Is Credit Card Age Verification?

At its core, credit card age verification involves inferring a customer’s age based on their ability to possess and use a credit card. Since most countries require individuals to be 18 or older to have a credit card, this method assumes that anyone making a transaction with one meets the age requirement.

While the approach of using credit cards to verify an age has been widely adopted, especially in industries like online gambling and ecommerce, it is far from flawless. Many businesses are re-evaluating whether it’s the best option for accurate, secure age verification.

Advantages of Using Credit Cards for Age Verification

Credit card age verification does offer several benefits that make it an attractive option for businesses.

Below are some key advantages:

1. Established Verification Process

Credit cards are already a widely used form of payment in many industries, making them a familiar and accessible tool for age verification. Businesses don’t need to set up additional systems, as credit card usage can seamlessly integrate into online checkout processes.

2. Convenience for Users

For most users, using their credit card is straightforward and doesn’t require them to take extra steps like uploading documents or completing additional forms. This simplicity enhances the user experience, reducing friction at checkout.

3. Increased Security

Credit cards typically include several layers of security, such as CVV codes and encryption, which can help businesses validate a user’s age via a credit card. This adds an extra layer of protection against unauthorized access.

What Is Credit Card Age Verification?

4. Real-Time Verification

One of the strongest selling points for using credit cards is the instantaneous verification process. Transactions are processed almost immediately, ensuring that there are no delays for the user when accessing age-restricted products or services.

5. Fraud Prevention

Since credit cards are often linked to secure bank accounts, they inherently carry an added level of security. This prevents minors from easily fabricating age verification on their own without access to a valid credit card.

While these advantages make credit card age verification appealing, there are several drawbacks to consider.

Disadvantages of Using Credit Cards for Age Verification

Credit card age verification is far from foolproof. It has significant limitations that businesses need to address to avoid compliance issues and user dissatisfaction.

1. Exclusion of Younger Users

Not all adults have access to credit cards for various reasons, such as poor credit history, personal choice, or financial ineligibility. This reliance on credit cards may unintentionally exclude legitimate users from accessing services they are legally entitled to use.

2. Privacy Concerns

Requiring users to input their credit card information for something as simple as age verification can raise privacy concerns. Many users hesitate to share sensitive financial details, especially due to the increasing risk of data breaches.

3. Potential for Fraud

Despite security measures, credit cards are still susceptible to fraud. Minors can use stolen or borrowed credit card information to bypass restrictions, making this method an unreliable solution for accurate age verification.

4. Not Foolproof

Simply owning a credit card does not guarantee that the user is of legal age. For instance, minors may use a parent’s or guardian’s card with permission, which invalidates the intended purpose of the verification.

5. Dependence on Third-Party Payment Processors

Businesses relying on payment gateways or third-party services for credit card transactions depend on those systems to accurately handle and verify user data. Any issues with these systems, such as downtime or breaches, can impact the age verification process.

Given these limitations, businesses may want to explore alternative methods for verifying user age.

Alternatives to Credit Cards for Age Verification

Alternatives to Credit Cards for Age Verification

If you’re seeking a more reliable solution, there are several alternative methods for verifying user age. These approaches address many of the shortcomings associated with credit card age verification.

1. Government-Issued ID Verification

This method involves verifying a user’s age through official government-issued identification documents, such as passports, driver’s licenses, or national ID cards. By directly utilizing these trusted documents, this approach provides a high level of accuracy and eliminates the need to rely on inferred or estimated data.

It is a secure and widely accepted method, ensuring compliance with legal age verification requirements across various industries, such as ecommerce, online gaming, and financial services.

2. Biometric Authentication

Biometric methods, such as facial recognition or fingerprint scanning, use advanced AI technology to estimate a user’s age by analyzing their unique biometric data. This solution is frictionless and user-friendly, minimizing the need for cumbersome document uploads.

In addition to offering fast and seamless verification, biometric authentication provides enhanced security by reducing the risk of identity fraud. It is particularly useful in digital environments where a smooth user experience is critical, such as mobile applications and online platforms.

3. Document Verification

With document verification, users upload scanned copies or photos of official government IDs for age and identity verification. The platform processes these documents using sophisticated software to assess their authenticity, ensuring that only genuine documents are accepted.

This method provides a robust and reliable way to remain compliant with regulations while also protecting the sensitive information contained within the documents. It is often used by regulated industries where accuracy and security are paramount, such as banking, insurance, and online retail.

4. Mobile Number Verification

Mobile number verification leverages data provided by mobile carriers to verify a user’s identity and age.

By linking the mobile number to the user’s account or service, this method enables real-time verification that is both quick and convenient. It reduces the need for extensive data exchanges while maintaining a high level of security. This approach is ideal for situations where speed is critical, such as during account sign-ups or for mobile-based services.

5. Knowledge-Based Authentication (KBA)

KBA asks users specific, personalized questions related to their personal history, such as former addresses, prior transactions, or other secure knowledge-based details. This method helps confirm identity and age by requiring information that only the user would know.

This method is typically used alongside other verification methods to enhance overall security in industries such as finance, healthcare, and ecommerce.

Unlock the Secrets to Secure Age Verification

Industries Using Credit Card Age Verification

Credit card age verification is widely used in industries that must comply with strict legal regulations for age-restricted goods and services. By verifying a customer’s age, businesses can ensure they meet compliance standards while promoting responsible usage of their products or services. Key sectors include:

  • Ecommerce: Online retailers selling age-restricted products such as alcohol, tobacco, vaping products, or other items subject to legal age limits rely on credit card verification as a safeguard against underage purchases.
  • Online Gambling: To comply with regulatory requirements and prevent underage participation, gambling platforms use age verification to ensure users meet the legal age criteria, promoting safe and responsible gambling practices.
  • Streaming Services: Platforms offering age-gated content, including movies, series, or subscriptions to adult-only sections, use credit card verification to control access and adhere to content rating guidelines.
  • Alcohol and Tobacco Sales: Vendors of alcohol, tobacco, and similar products must restrict access to individuals of legal age. Credit card age verification helps them comply with laws by screening buyers before the sale is completed.

By implementing credit card age verification, these industries not only stay compliant but also build trust by prioritizing customer safety and adhering to ethical standards.

Simplify Age Verification for Retail & Ecommerce

Wrapping Up

Credit card age verification has been a widely used solution for businesses aiming to safeguard age-restricted products or content. It offers advantages such as convenience, real-time verification, and ease of integration. However, its drawbacks – like privacy concerns, potential fraud, and user exclusion – cannot be ignored.

For businesses seeking a more robust solution, alternatives like government ID verification and biometric authentication, which FTx Identity offers, can offer greater accuracy and security. Each method has its strengths, but the ultimate selection should align with your business’s compliance needs and user experience goals.

While credit cards may remain a part of the age verification process, the evolution of more sophisticated methods highlights the ongoing demand for innovation in this field.

Want to explore how FTx Identity can elevate your age verification process? Contact us today to schedule a consultation and see our cutting-edge solutions in action with a demo!

FAQs

Credit card companies typically do not verify a person's ID in the same way that a government agency might. When issuing a credit card, they perform identity verification through credit checks and financial history assessments, which may include verifying personal information like your name, address, and Social Security number. However, they don't usually require physical ID verification, like checking a driver's license or passport, as part of the standard credit card application process.

Visa: Widely accepted globally, Visa cards are commonly used for age verification due to their extensive reach and reliability.

Mastercard: Like Visa, Mastercard is another globally recognized brand that is frequently accepted for age verification purposes.

American Express: While not as universally accepted as Visa or Mastercard, American Express is still a popular choice for age verification, especially in the U.S.

Discover: Primarily used in the U.S., Discover cards are also accepted by some age verification systems.

These cards are typically accepted because they are issued to individuals who are at least 18 years old, aligning with the age verification requirements. However, acceptance can vary depending on the specific service or platform.

The types of credit cards accepted for age verification typically include major credit card brands such as Visa, Mastercard, American Express, and Discover. These cards are widely used and recognized, making them reliable options for verifying a customer's age. However, the specific types of credit cards accepted can vary depending on the business and the payment processing system they use.

Using someone else's credit card to verify your age is generally not recommended or allowed. Age verification systems are designed to confirm that the person making the transaction is of legal age, and using another person's credit card could be considered fraudulent. Additionally, it may violate the terms of service of the platform or service you are trying to access. It's best to use your own credit card to ensure compliance and avoid potential legal issues.

Credit card age verification is important for businesses to ensure compliance with legal regulations, protect against fraud, and provide age-appropriate access to products and services.

It helps build customer trust and reduces liability risks by preventing minors from accessing restricted content. Industries like online gaming, alcohol sales, and adult content particularly benefit from this practice.

Generally, yes, credit card details are often required for age verification. This method assumes that since credit cards are typically issued to individuals aged 18 and above, possession of a credit card can serve as proof of legal age.

However, this approach has its limitations, like excluding younger users who may not have credit cards and raising privacy concerns for those hesitant to share financial information for non-payment purposes.