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 (S.B. 1969), 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 (S.B. 1969), 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 (S.B. 1969), Sec. 4.010(a), eff. September 1, 2009.