Washington State
House of Representatives
Office of Program Research		 BILL
ANALYSIS
Insurance, Financial Services & Consumer Protection Committee

HB 2620

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Securing credit and debit card information.

Sponsors: Representatives Hurst, Ormsby, Morrell, Roach, Rolfes, Kelley and Simpson.

Brief Summary of Bill
  • Requires the truncation of credit card and debit card numbers on electronically printed receipts that are provided to cardholders or retained by a business or retailer.

Hearing Date: 1/22/08, 1/22/08

Staff: Jon Hedegard (786-7127).

Background:

State law provides that persons that accepts credit cards for the transaction of business may only print the last five digits of the credit card number on any receipt give to the cardholder. The expiration date may not printed. These restrictions only apply to receipts that are electronically printed and do not apply when the means of recording the number is by imprint or handwriting. There is an additional parallel requirement specific to retailers in state law.

In 2003, the federal Fair Credit Reporting Act (15 U.S.C. 1681, et seq) was modified to provide protections parallel to those in state law for the truncation of numbers on receipts provided to cardholders. The federal Fair Credit Reporting Act preempts state laws that conflict with the specific provisions regarding truncation of credit card or debit card numbers. It is silent on restrictions retained by persons that accept credit cards or debit cards for the transaction of business.

Summary of Bill:

"Debit card" is defined as "a card or device used to obtain money, property, labor, or services by a transaction that debits a cardholder's account, rather than extending credit."

A person that accepts credit cards or debit cards for the transaction of business may not print more than the last five numbers of an account number or print the expiration date on an electronic receipt that is retained by the person or is provided to the cardholder. This restriction does not apply if the means of recording the number is by imprint or handwriting.

A retailer that accepts credit cards or debit cards for the transaction of business may not print more than the last five numbers of an account number or print the expiration date on an electronic receipt that is retained by the person or is provided to the cardholder. This restriction does not apply if the means of recording the number is by imprint or handwriting or if the retailer processes the transaction electronically but takes additional manual measures to ensure that the card is not used fraudulently.

Appropriation: None.

Fiscal Note: Requested on January 21, 2008.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.