CHAPTER 505. USE OF ZIP CODE TO VERIFY CUSTOMER'S IDENTITY

BUSINESS AND COMMERCE CODE

TITLE 11. PERSONAL IDENTITY INFORMATION

SUBTITLE A. IDENTIFYING INFORMATION

CHAPTER 505. USE OF ZIP CODE TO VERIFY CUSTOMER'S IDENTITY

Sec. 505.001. DEFINITIONS. In this chapter:

(1) "Credit card" means a card or device issued under an

agreement by which the issuer gives to a cardholder the right to

obtain credit from the issuer or another person.

(2) "Credit card issuer" means a lender, including a financial

institution, or a merchant that receives applications and issues

credit cards to individuals.

Added by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 4.010(a), eff. September 1, 2009.

Sec. 505.002. USE OF ZIP CODE TO VERIFY IDENTITY IN CREDIT CARD

TRANSACTION. (a) A business may require a customer who

purchases a good or service from the business using a credit card

to provide the customer's zip code to verify the customer's

identity as provided by Subsection (b).

(b) A business that obtains a customer's zip code under

Subsection (a) may electronically verify with the credit card

issuer that the zip code matches any zip code that the credit

card issuer has on file for the credit card.

Added by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 4.010(a), eff. September 1, 2009.

Sec. 505.003. RETENTION OF ZIP CODE PROHIBITED. A business that

obtains a customer's zip code under Section 505.002 may not

retain the zip code in any form after the purchase of the good or

service has been completed.

Added by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 4.010(a), eff. September 1, 2009.