SENATE 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

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 22, 1990; February 23, 1990

Majority Report:  Do pass as amended.

      Signed by Senators von Reichbauer, Chairman; Johnson, Vice Chairman; Fleming, Moore, Rasmussen, Smitherman.

Senate Staff:Gerard S. Poliquin (786-7403)

                  February 23, 1990

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, FEBRUARY 23, 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.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDMENT:

The prohibition against recording the credit card's expiration date is deleted.

Senate Committee - Testified: Randy Durham, Washington Retail Association; Cliff Webster, Washington State Hotel & Motel Association