Chapter 312 Oregon Laws 2003

AN ACT

HB 3316

Relating to commercial transactions; amending ORS 646.894.

Whereas identity theft and other types of financial fraud are a growing problem in Oregon; and

Whereas identity theft and other types of financial fraud threaten the safety and well-being of all Oregonians by damaging credit records, driving up the cost of goods and services and unduly burdening law enforcement agencies; and

Whereas identity theft and other types of financial fraud can be deterred by allowing a merchant who is presented with a credit card or debit card in payment for goods or services to verify the identity of the person who presents the credit card or debit card; and

Whereas some merchants are deterred from verifying the identities of persons who present credit cards or debit cards because of provisions in contracts between the merchants and the credit card or debit card issuers prohibiting verification of identity; and

Whereas provisions in contracts that prohibit verification of identity are contrary to public policy and void because those provisions prevent persons presenting credit cards or debit cards in payment for goods or services and merchants who accept credit cards or debit cards from using reasonable means to prevent themselves from becoming victims of crimes; now, therefore,

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 646.894 is amended to read:

646.894. (1) A [person] merchant that accepts a credit card or debit card for a [business] transaction [shall not write or cause to be written or] may require that [a] the credit card or debit card holder [write on a credit card transaction form any] provide personal information, other than the personal information that appears on the face of the credit card or debit card, for the purposes of verification of the card holder’s identity [not required by the credit card issuer]. The merchant may not write the information on the credit card or debit card transaction form.

(2) This section [shall] may not be construed to prevent a [person] merchant from requesting and keeping in written form information necessary for shipping, delivery or installation of purchased goods or services, or for warranty when the information is provided voluntarily by a credit card or debit card holder.

(3) Any provision in a contract between a merchant and a credit card or debit card issuer, financial institution or other person that prohibits the merchant from verifying the identity of a person who presents a credit card or debit card in payment for goods or services by requiring or requesting identification is contrary to public policy and void.

(4) Nothing in this section may be construed to:

(a) Compel a merchant to verify the identity of a person who presents a credit card or debit card in payment for goods or services; or

(b) Interfere with the ability of a merchant to make and enforce policies regarding verification of the identity of a person who presents a credit card or debit card in payment for goods or services.

(5) As used in this section, “merchant” means a person who, in the ordinary course of that person’s business, permits persons to present credit cards or debit cards in payment for goods or services.

Approved by the Governor June 11, 2003

Filed in the office of Secretary of State June 11, 2003

Effective date January 1, 2004

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