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I always refuse. Asking for additional information is against most merchant agreements with the card companies and the practice is actually illegal in some states.
Visa and MasterCard state in their merchant rules that if the back of the card is signed, a merchant may not make giving personal information a condition of making the sale. If the card is not signed, they may ask for identifying information. American Express requires merchants to check only the signature on the back of the card and does not require any additional identification.
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