What's happening
This bill further restricts businesses from requiring customers to enter personal information during credit or debit transactions, with exceptions for fraud prevention and voluntary disclosure.
Why it matters
Expands privacy protections. by covering not just written, but also electronically entered personal information (including addresses, zip codes, email addresses, and all telephone numbers) during credit or debit card transactions, making it harder for businesses to collect sensitive data without necessity.
Narrows permissible exceptions. businesses may only require personal information if it’s essential for shipping, delivery, installation, special orders, certain manual processing, or specifically for fraud, theft, or criminal activity prevention, reducing routine over-collection of data.
Clarifies voluntary disclosure. businesses can still ask customers to provide personal information, but only if they clearly inform the customer how the information will be used, giving consumers more control over their data.
Addresses digital and modern commerce practices. by explicitly including electronic entry of information, recognizing the prevalence of online and digital point-of-sale systems where data privacy risks are greater.
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Who cares
Credit and debit card holders
The bill would extend restrictions on collecting personal information on transaction forms to electronic entry and explicitly cover ZIP codes, email addresses and home, cell and work phone numbers.
Retailers and other card-accepting businesses
They would face expanded collection restrictions but could request personal identification voluntarily if they disclose how it would be used.
Merchants investigating fraud or enforcing terms of sale
The bill would allow them to require addresses, ZIP codes and telephone numbers solely for those purposes or to detect, investigate or prevent theft, identity theft or criminal activity.
Merchants arranging shipping, delivery, installation or special orders
They could continue requiring necessary address and telephone information, with ZIP codes expressly added to that exception.
Headline styles
Protect Cardholder Info
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to consumer protection
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Cardholder Data Collection
Assembly Floor Calendar · Sponsor Rebecca Seawright
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2398
2019-2020 Regular Sessions
IN SENATE
January 24, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to the personal information of a credit or debit card holder
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 3 of section 520-a of the general business law, as amended by chapter 233 of the laws of 2007, is amended to read as follows:
3. No person, firm, partnership or corporation which accepts credit or debit cards for the transaction of business shall require the credit or debit card holder to write or electronically enter on the credit or debit card transaction form, nor shall it write [or], cause to be written, or electronically entered on such form or on any attachment thereto, any personal identification information, including but not limited to the credit or debit card holder's address [or], zip code, email address or telephone [number] numbers, including home, cell and work telephone numbers, that is not required by the credit or debit card issuer to complete the credit or debit card transaction; provided, however, that the credit or debit card holder's address, zip code and telephone number may be required [on such form or attachment thereto] where (i) such information is necessary for shipping, delivery or installation of purchased merchandise or for special orders; [or] (ii) the person, firm, partnership or corporation processes credit or debit card transactions by mailing transaction forms to a designated bankcard center for settlement; or (iii) such information is used solely for the detection, investigation or prevention of fraud, theft, identity theft, criminal activity or enforcement of terms of sale. Nothing in this subdivision shall prevent a person, firm or corporation which accepts credit cards or debit cards from requesting that a customer voluntarily
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08693-01-9
S. 2398 2
provide personal identification where the use of such information is disclosed to such consumer.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to the personal information of a credit or debit card holder
Purpose
To prohibit businesses from requiring personal identification informa- tion to complete credit or debit card transactions unless required by the credit or debit card issuer in order to protect consumer's privacy.
Summary of provisions
Section one of the bill amends subdivision 3 of section 520-a of the general business law to prohibit businesses that accept credit Or debit cards from requiring consumers to provide personal information, includ- ing by electronic entry, in order to pay with a credit or debit card, unless such information is solely used for the detection, investigation or prevention of fraud, theft, identity theft, criminal activity or the enforcement of terms of sale, The bill updates the definition of personal information to include a consumer's zip code, email address, and home, cell; and work telephone numbers.
Section two of the bill sets forth the effective date
Justification
At present, many businesses in New York and other states across the country require personal information, such as a zip code, when consumers complete credit or debit card transactions, despite the fact that such information is unnecessary when completing an in-person transaction. Such personal information can then be used in customized computer soft- ware to perform reverse searches from databases that contain millions of names, e-mail addresses, telephone numbers, and street addresses that are indexed in a manner resembling a reverse phonebook. The software can then match a person's name and zip code with their previously undis- closed address, giving the business the ability to market products to customers and to sell this information to other businesses.
By further defining what constitutes "personal identification informa- tion," consumer interests in New York can be better protected. Addi- tionally, by prohibiting such information from being entered electron- ically, the statute becomes current with the technological advances made since the statute was originally passed in 1987.
Fiscal impact on the state
None.
Fiscal impact on localities
None.
Impact on regulation of businesses and individuals
Prohibits businesses from requiring individuals to provide certain personal information in order to pay with a credit or debit card.
Impact on fines, imprisonment, forfeiture of rights, or other penal sanctions
None.
Legislative history
Senate Bill 8388 | Assembly Bill 7915 of 2017-18; Referred to Senate Consumer Protection; Ordered to Third Reading in the Assembly.
Effective date
This act shall take effect on the ninetieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.