Assembly Bill No. 420–Assemblymen Ohrenschall,
Price and Manendo

March 8, 1999

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Referred to Committee on Commerce and Labor

 

SUMMARY—Prohibits requirement of secondary identification for acceptance of credit card. (BDR 52-1002)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to trade practices; prohibiting a seller from requiring secondary identification as a condition of accepting a credit card; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 597.940 is hereby amended to read as follows:

1-2 597.940 1. Except as otherwise provided in this subsection, a

1-3 business shall not, without the customer’s consent, record the account

1-4 number of any of a customer’s credit cards on the customer’s check or

1-5 draft as a condition of accepting that check or draft. This subsection does

1-6 not prohibit:

1-7 (a) The business from requiring the customer to produce reasonable

1-8 forms of positive identification other than a credit card, such as a driver’s

1-9 license or identification card, as a condition of accepting a check or draft.

1-10 (b) The business from requesting the customer to display a credit card

1-11 as an indicia of creditworthiness or financial responsibility, if the only

1-12 information recorded by the business concerning the credit card is the type

1-13 of credit card displayed, the issuer of the card and the date the card expires.

1-14 (c) The business from requesting the customer to record the account

1-15 number of his credit card on the check or draft with which payment on the

1-16 credit card account is being made.

2-1 (d) The business from requesting the production of or recording of the

2-2 account number of a credit card as a condition of cashing a check or draft

2-3 if:

2-4 (1) The business has agreed with the issuer of the credit card to cash

2-5 the checks or drafts as a service to the cardholders of the issuer;

2-6 (2) The issuer has agreed to guarantee any such check or draft so

2-7 cashed; and

2-8 (3) The cardholder has given actual, apparent or implied authority for

2-9 the use of his account number for this purpose.

2-10 2. Except as otherwise provided in this subsection, a business shall

2-11 not, without the customer’s consent, record a customer’s telephone number

2-12 on the credit card sales slip as a condition of accepting his credit card. This

2-13 subsection does not:

2-14 (a) Prohibit the recordation of personal identifying information required

2-15 for a special purpose incidental to the use of the credit card, such as the

2-16 delivery, shipping, servicing or installation of the purchased merchandise.

2-17 (b) Apply to a transaction in which the customer receives a cash

2-18 advance against his credit card or to a transaction involving the use of

2-19 preprinted spaces for personal identifying information that the business

2-20 accepting the credit card has a contractual obligation to record in order to

2-21 complete the transaction.

2-22 (c) Apply to a transaction in which the customer’s purchase is made by

2-23 the use of a device that electronically authorizes the use of the credit card

2-24 and processes information relating thereto.

2-25 3. A business shall not require a customer to provide secondary

2-26 identification as a condition to accepting a credit card tendered by the

2-27 customer, if the contract between the business and the issuer of the credit

2-28 card provides that presentation of the credit card is sufficient.

2-29 4. As used in this section, unless the context otherwise requires,

2-30 "credit card" has the meaning ascribed to it in NRS 205.630.

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