California Court: No Zip Code Required for Credit Card Purchases

[pkd09]

I just read on-line that California court just ruled that it violates a customers rights if you ask for their "zip code" when processing a credit card.

 

[babywings76]

I'd email HO and see if they are aware of this and what we should do. It's the Credit card companies who require that info. That security question is very commonly asked nowadays, so I'm curious how the credit card companies will address this.

 

[wadesgirl]

I agree with Amanda, find what you can and email HO.

 

[pkd09]

I find most of my customers are surprised by the "zip code" requirement. Most think we need the "security number" on the back of the card.

 

[chefheidi2003]

I find most of my customers are surprised by the "zip code" requirement. Most think we need the "security number" on the back of the card.

Yeah..and I would much rather give out my zip code than my security code. I don't like that a lot of the DS companies ask you for that now.

 

[NooraK]

Yeah..and I would much rather give out my zip code than my security code. I don't like that a lot of the DS companies ask you for that now.

But that's the whole purpose of the CVV code So that the company processing your card can tell that you have the physical card, and didn't just steal the number and expiration date from somewhere.

 

[wadesgirl]

I find most of my customers are surprised by the "zip code" requirement. Most think we need the "security number" on the back of the card.

I will ask for the zip code and it confuses a lot of people. I say "your billing zip code" and they either look at me like they don't know what I'm asking or they try to give me the security number off the back.

 

[esavvymom]

People just don't realize that when that credit card goes through, it's automatically being compared to the billing address or zip code, to make sure it matches. Just like the CVV code...which to me, if someone stole my credit card physically- uh ,DUH they've got that too. They may have pitched my Drivers License and other info that has my zip code on it.Anyway...yes- contact HO to have them verify. I don't see how that violates privacy concerns or would last long, but we all know how judges these days like to write their own laws. Edit: Ok, found an article about this. http://www.consumeraffairs.com/news04/2011/02/california-merchants-can-t-ask-credit-card-customrs-for-zip-code.html
DEFINITELY call HO right away. It carries a $1000 fine. Although, it seems to impact more brick-mortar type business, because if you read the article it talks about Gas-stations can still do it because they don't retain the information for their own data, as well as online/shipping type retailers-because they need to ship you something. Since we don't retain that information in anyway- other than the shipping info, maybe it won't affect our type of business. Apparently this is a 1990 law that the court upheld.

"The law prohibits merchants from requesting and recording a credit card holder's “personal identification information.” The court ruled that such information can include not only a telephone number or street address but also a ZIP code."

Personally- I think that's silly. How PERSONAL is it to identify your zip code?? How many people have that zip code? A phone number is YOURS, but a zip code?

 

[NooraK]

People just don't realize that when that credit card goes through, it's automatically being compared to the billing address or zip code, to make sure it matches. Just like the CVV code...which to me, if someone stole my credit card physically- uh ,DUH they've got that too. They may have pitched my Drivers License and other info that has my zip code on it.

Anyway...yes- contact HO to have them verify. I don't see how that violates privacy concerns or would last long, but we all know how judges these days like to write their own laws.


Edit: Ok, found an article about this. http://www.consumeraffairs.com/news04/2011/02/california-merchants-can-t-ask-credit-card-customrs-for-zip-code.html
DEFINITELY call HO right away. It carries a $1000 fine. Although, it seems to impact more brick-mortar type business, because if you read the article it talks about Gas-stations can still do it because they don't retain the information for their own data, as well as online/shipping type retailers-because they need to ship you something. Since we don't retain that information in anyway- other than the shipping info, maybe it won't affect our type of business.

Apparently this is a 1990 law that the court upheld.

Personally- I think that's silly. How PERSONAL is it to identify your zip code?? How many people have that zip code? A phone number is YOURS, but a zip code?

The article I found, referred to an incident where the merchant used the zip to match up to the customer's undisclosed address. That, I think is wrong and the merchant went to far.

The CVV is meant to deter fraud in situations where the physical card isn't being swiped. If a theif stole your credit card, they'd high-tail it to Best Buy and buy a bunch of electronics. When a thief steals just your credit card number by hacking into a website or something, they'll go on Amazon.com and buy said electronics. That's where the CVV and address stuff comes into play in making sure the right person is using the card.

 

[kam]

The article I found, referred to an incident where the merchant used the zip to match up to the customer's undisclosed address. That, I think is wrong and the merchant went to far.

The CVV is meant to deter fraud in situations where the physical card isn't being swiped. If a theif stole your credit card, they'd high-tail it to Best Buy and buy a bunch of electronics. When a thief steals just your credit card number by hacking into a website or something, they'll go on Amazon.com and buy said electronics. That's where the CVV and address stuff comes into play in making sure the right person is using the card.

I would MUCH rather risk getting some junk mail than give up security. There is always the chance that asking the billing zip code might prevent unauthorized use.

All they had to do was dis-allow the merchants from storing the info and/or using it beyond credit verification.

I think they took it one step too far. imo

 

[NooraK]

All they had to do was dis-allow the merchants from storing the info and/or using it beyond credit verification.

Exactly.
.
.
.

 

[winklermom]

I worked for GAP Outlet prior to starting my PC business and when someone would check out, we were supposed to ask for their ZIP code. The purpose was to give the company an idea from where our customer base was coming. Most people didn't care at all to give it to you...after all, it's just a ZIP code. However, every now and again I'd get someone who just refused to do so. At which point, I would just enter the ZIP code of the town in which we live. I could understand them not wanting to share their SSN or phone number, but your ZIP code? I just don't get it.

 

[wadesgirl]

I worked for GAP Outlet prior to starting my PC business and when someone would check out, we were supposed to ask for their ZIP code. The purpose was to give the company an idea from where our customer base was coming. Most people didn't care at all to give it to you...after all, it's just a ZIP code. However, every now and again I'd get someone who just refused to do so. At which point, I would just enter the ZIP code of the town in which we live. I could understand them not wanting to share their SSN or phone number, but your ZIP code? I just don't get it.

I'd rather give my zip code than my phone number! DH always gave them 1 digit off our regular number!

I know some people who run their businesses online who have used such things as the zip code to verify if the person is running a fradulant charge. Some will not do business with people when their zip code for their credit card billing doesn't match their ship to address. To them is screams big red flag of someone doing bad business.

 

[winklermom]

Some will not do business with people when their zip code for their credit card billing doesn't match their ship to address. To them is screams big red flag of someone doing bad business.

We've actually had issues with that before. My DH is a pastor and has a church credit card. He ordered something for the church but was having it delivered to our home which is in a different ZIP code. This was several years ago and was the first time that we had heard that this would cause a discrepancy. At any rate, we finally figured out what the hold-up was on the delivery and got it straightened out but it was somewhat frustrating.

I can't help but think about people who have a P.O. box...UPS and FEDEX don't deliver to a P.O. box. What if that's where the CC bill goes?

 

[wadesgirl]

We've actually had issues with that before. My DH is a pastor and has a church credit card. He ordered something for the church but was having it delivered to our home which is in a different ZIP code. This was several years ago and was the first time that we had heard that this would cause a discrepancy. At any rate, we finally figured out what the hold-up was on the delivery and got it straightened out but it was somewhat frustrating.

I can't help but think about people who have a P.O. box...UPS and FEDEX don't deliver to a P.O. box. What if that's where the CC bill goes?

Yes there are going to be some cases where it doesn't matter (having something shipped to your work address vs your home address) but when they talked about it, usually when they pressed further they never heard back from the person leading them to think it was fradulant.

 

[esavvymom]

Funny thing is, this does little to prevent companies from keeping track of your information.FOR EXAMPLE...Target. If you go to Target and do not have your receipt or your card, I think you can actually give them your Driver's License and it will find your receipt. Or any of those "frequent shopper" cards. With the CA logic- those should be illegal, right? That magnetic strip on your CC has more than just your CC #. It has alot. And there is a company here in NC that specifically tracks all of that data. One guy told us you'd be SHOCKED at how much data is collected on EVERYTHING you do, and you have no idea.So the zip code thing...it's just a band-aid to make people feel good. I'd rather protect my identity and have them verify that stuff, than worry about if they are "profiling" my purchases. They are already doing that. Just my opinion.

 

[babywings76]

Funny thing is, this does little to prevent companies from keeping track of your information.

FOR EXAMPLE...Target. If you go to Target and do not have your receipt or your card, I think you can actually give them your Driver's License and it will find your receipt. Or any of those "frequent shopper" cards. With the CA logic- those should be illegal, right? That magnetic strip on your CC has more than just your CC #. It has alot. And there is a company here in NC that specifically tracks all of that data. One guy told us you'd be SHOCKED at how much data is collected on EVERYTHING you do, and you have no idea.


So the zip code thing...it's just a band-aid to make people feel good. I'd rather protect my identity and have them verify that stuff, than worry about if they are "profiling" my purchases. They are already doing that. Just my opinion.

Yeah, I went to Target and couldn't remember which receipt I needed and if I still had it. I was doing multiple returns after Christmas w/ things that were bought at different times. Plus, I couldn't remember which card I used. I gave him the card I thought I would've used and he was able to track that whole purchase and issue me my refund w/o having a receipt. It was kind of cool, but also kind of creepy that there's a permanent record out there w/ my shopping history. lol

 

[esavvymom]

Yeah, I went to Target and couldn't remember which receipt I needed and if I still had it. I was doing multiple returns after Christmas w/ things that were bought at different times. Plus, I couldn't remember which card I used. I gave him the card I thought I would've used and he was able to track that whole purchase and issue me my refund w/o having a receipt. It was kind of cool, but also kind of creepy that there's a permanent record out there w/ my shopping history. lol

What's even more creepy is a couple of months back, I got an email from my local Grocery Store chain saying something like "You purchased several of these items, and they have been recalled." yada-yada. Ugh. They knew and kept record of what I purchased.

I can see WHY in this case, but still.....There is minimal measure of privacy whenever you use anything other than cash.

 

[Shawnna]

Lots of stores ask for a zip code or a telephone number. Personally I don't really see much difference in giving either of those for a cc purchase than them taking all the info off your drivers license when you write a check. Its all about tracking and verification. Thats why I prefer cash...lol

 

[Nanisu]

I've just always told them the truth: the banks kick it back to PC if there is no zip code. I even have to use my zip code when I buy gas with my gas card. No biggee.

 

[Sheila]

No one has to give up a fingerprint to renew your license? That's something they started in TX a few years back. I predicted the first time I had to give up a print that they would be asking for a new finger the next time. I was right! They are working towards all 10 prints!

I gave up all 10 of mine to work for the Police Department, so it's not like they wouldn't be able to find me in a database if I ever decided to cross over to the criminal side ... but for people who haven't opted to work in a secure field & criminals ... it seem a little invasive to be forced to give up all your prints 1 finger at a time until they have your entire set on file. Don't you think?

 

[NooraK]

Yeah, I went to Target and couldn't remember which receipt I needed and if I still had it. I was doing multiple returns after Christmas w/ things that were bought at different times. Plus, I couldn't remember which card I used. I gave him the card I thought I would've used and he was able to track that whole purchase and issue me my refund w/o having a receipt. It was kind of cool, but also kind of creepy that there's a permanent record out there w/ my shopping history. lol

I've heard that Target actually records your card number on the security video at the register as you pay with it...

What's even more creepy is a couple of months back, I got an email from my local Grocery Store chain saying something like "You purchased several of these items, and they have been recalled." yada-yada. Ugh. They knew and kept record of what I purchased.

I can see WHY in this case, but still.....There is minimal measure of privacy whenever you use anything other than cash.

I've had that, too, at a store that has a loyalty card program. Costco also keeps track of all of my purchases.