New Texas law allows merchants to decline card purchases without ID

[TexasTowelie]

A law that takes effect in January will allow Texas merchants to ask for photo identification for credit and debit card purchases – and turn down transactions if a buyer won't show it.

The aim of the law — which the Legislature passed during the regular session that ended in May — is to reduce debit and credit card fraud. Though merchants will sometimes pick up the tab for money lost to fraud, it often falls to banks to absorb the losses and replace compromised cards.

"We end up taking a lot of losses," said Kevin Monk, executive vice president and chief operations officer at Alliance Bank, based in Sulphur Springs. "One card breach can have a significant impact."

Merchants can ask to see photo ID, but contracts they have with credit card companies often bar them from declining a transaction if a customer refuses to show it.

Read more: http://www.mrt.com/news/politics/texas/article/New-Texas-law-allows-merchants-to-decline-card-11741804.php (Midland Reporter-Telegram)

[SCantiGOP]

1. Don't understand this at all

Merchants already have that ability. No merchant is ever required to take a credit or debit card if they don't want to. Many places either charge more for a credit card or don't accept them at all. And everywhere I know of has always required a driver's license (I guess they would take other photo ID) if you want to use a debit card.

My guess is that this would not allow a credit card company to require that a merchant accept their card without an ID, which would likely violate the Interstate Commerce Clause if enacted by a State rather than the federal government.

[tonyt53]

3. I'm in KY. Yesterday the girl in front of me was asked for ID - If she was using the card as a cc.

When she told them "debit", she didn't have to show the ID because she had the pin.

[Thomas Hurt]

2. another conservative solution in search of a problem...

or another reason to discriminate, cuz they think brown people are too lazy to have a credit card, they must be ID thieves.

[msongs]

4. retailers should ask for proof of ownership before charging goods. cuts down on fraud.

in our business we always ask for ID before accepting a CC. does not necessarily need to be pic ID

[Susan Calvin]

5. I'd like to know the backstory.

I seldom use credit cards in person (and never let it out of my sight, as in restaurants).

I'm always pleased when asked for further ID, but was anything preventing merchants from doing that before this law?

Oh, I see - contracts with CC companies. Why would they object to separate ID?

Of course, I do know the answer to that question is always "money."

Still interested in backstory.