HOUSE BILL REPORT

EHB 2261

BYRepresentatives Silver, Prince, Ballard, Youngsman, May, K. Wilson and P. King 

Making it a misdemeanor to require recording of a credit card number for check cashing purpose.

House Committe on Financial Institutions & Insurance

Majority Report:  Do pass as amended.  (13)

      Signed by Representatives Dellwo, Chair; Zellinsky, Vice Chair; Chandler, Ranking Republican Member; Anderson, Baugher, Crane, Day, Dorn, Inslee, P. King, Nutley, Schmidt and Winsley.

House Staff:John Conniff (786-7119)

AS PASSED HOUSE FEBRUARY 6, 1990

BACKGROUND:

Retailers and other businesses who accept personal checks in payment for goods or services have a legal right to request reasonable identification from the person presenting the check.  Most retailers and businesses require customers paying by check to present a driver's license and a major credit card. In most cases, the retailer records the driver's license and credit card numbers on the check.  Some consumer groups have argued that recording credit card numbers on checks increases the opportunity for credit card fraud.

SUMMARY:

A new section is added to the Uniform Commercial Code prohibiting the recording of credit card numbers and card expiration date when a credit card is shown as proof of identification and credit worthiness.  Recording of credit card numbers and card expiration date is permitted when the card serves in lieu of a security deposit.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Silver, Prime Sponsor.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    Recording the credit card numbers and card expiration date serves no purpose for the retailer taking the check in payment for goods.  However, when credit card information is added to information on the check about the owner of the card, the opportunity for credit card fraud increases.  Nothing in the legislation prevents retailers from asking for proof of identification in the form of a credit card.

House Committee - Testimony Against:      None.