That sounds like security theater. What would asking for the ZIP code help if it can't be validated on the spot? If the terminal submits the transaction in bat

That sounds like security theater. What would asking for the ZIP code help if it can't be validated on the spot? If the terminal submits the transaction in batch later, it's too late for that to catch a stolen card. Providing an incorrect ZIP code also makes the transaction more likely to be declined than not providing one at all for card-not-present transactions (and is also allowed), so it really makes no sense for a merchant to do that.