Brief Description: Allowing merchants to require additional identification when conducting credit and debit card sales.

Sponsors: Senators Winsley, Prentice, Benton, Kline and Rasmussen.

Hearing Date: 3/21/03.

Staff: Thamas Osborn (786-7129).

Background:

In contracts between retailers and certain credit/debit card issuers, the retailer is sometimes prohibited from requesting identification from customers during credit/debit card transactions. Such contract provisions have been criticized as making it easier for criminals to engage in credit card fraud.

Summary of Bill:

Provisions of contracts between retailers and credit/debit card issuers that prohibit verification of a customer's identity during a credit/debit card transaction are void for violation of public policy. Merchants are not required to verify a customer's identity, but may if they so choose. Retail chains may make and enforce their own policies regarding identity verification.

Appropriation: None.

Fiscal Note: Not Requested.

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