Consumer Privacy Protections When Paying By Check
Identity theft fraud has
been cited as the number one consumer compliant in California. The practice
of merchants record your credit card number on your check provide an easy way
for your number to be stolen and your credit ruined. In 1990, the
California legislature passed a law to prohibit retailers from continuing this
practice. Ten years later, many merchants are still in violation of the
law.
Consumers must be aware
of what can and cannot be required of them when they pay for retail items by
check.
The Merchant is NOT Allowed
to:
•
require
the consumer to show a credit card as a condition of accepting a check and is
not allowed to record a credit card number on the check;
•
call
the credit card company to verify if consumer has credit to cover check;
•
condition
acceptance of the check on the consumer authorizing the merchant to charge the
credit card if the check bounces.
The Merchant is Allowed
to:
•
require
and record the check guarantee card number;
•
ask
for and record the consumer's name, address and phone number on the check;
•
ask
a consumer to show a driver's license, state identification card or another
form of photo identification;
•
require
or record the credit card number when a check is used to get cash back,
the credit card number is used in lieu of a deposit, or when a check is used
to make payment on that credit card account
•
ask
a consumer to voluntarily show a credit card for identification or to demonstrate
credit-worthiness IF the only information recorded is the type of card, the
issuer, and expiration date. The retailer must also inform the consumer
that showing the credit card is not a requirement by posting a notice or telling
the consumer directly.
If you were asked to provide
your credit card number and the merchant wrote the number on your check when
paying for retail items, or if a merchant took other questionable actions with
regard to your credit, you can get more information regarding your rights by
sending an
e-mail to CALPIRG.
