It is illegal for a retailer to ask for your ZIP code for a credit transaction

[rockyct]

Why is that bad? Wouldn't you be rather served relevant and targeted ads? This theoretically reduces overall marketing costs and will put downward pressure on prices. It's a win/win for everyone. Only losers are TV show, magazine, and billboard ad sellers.

I'm talking more about person specific marketing/research so they can contact you with "exciting special offers." Zip codes aren't really the issue but phone numbers and email addresses are.

 

[suse920]

I bought gas twice this weekend and had to enter my ZIP. I guess it will take a little while for everyone to fall in line.

MotionMan

From what I understand this law only applies to retailers what are saving the zip codes in their own information systems. It is still legal to require the zip as part of the payment system as long as the data is not saved by the retailer.

So if gas stations were saving the zip codes to possibly track the billing zip codes of who was buying gas they will have to change their procedure. If gas stations were requiring the information solely for the purpose of charging the card and not saving the zip code information with a customer profile they are still in the green.

 

[SaDiZTiKStyLeZ]

I'm going to start asking the females for their numbers. :hmm:

 

[jlee]

Ah, ok.

How many addresses does a ZIP code cover (we have a similar thing in the UK and it usually covers a few streets)?

A lot - certainly more than a few streets. Cities will have more than one, but the ~50 sq mile town I work for has two (approx 11,000 residents).

 

[Malak]

At least it is in California.

Just reading about this in a legal paper, so I found a good quote to share:

Requiring a customer's ZIP code [for a credit card transaction] is illegal in California where the state's 1971 law prohibits merchants from requesting or requiring a card-holder's "personal identification information" as a condition of accepting the card for payment. The California Supreme Court has ruled that the ZIP code qualifies as personal identification information because it is part of the cardholder's address. Companies face fines of $250-$1000 for each violation. (See Pineda v. Williams-Sonoma Stores Inc., 2011 DJDAR 2278 (Feb. 10, 2011).)

So, if a retailer asks for your ZIP code (at least in California), refuse to give it.

Viva privacy!!!

MotionMan

I have to say I am not surprised the court managed to misinterpret a law once again, creating yet another major conflict for no reason. Life would be simpler without courts.

 

[Fayd]

Ah, ok.

How many addresses does a ZIP code cover (we have a similar thing in the UK and it usually covers a few streets)?

here's a map of Los Angeles sectioned off by zip code.

http://www.city-data.com/zipmaps/Los-Angeles-California.html

click on a specific zip code to see information about that zip code.

 

[MotionMan]

Again, I have no idea how the transactions actually work. Just speculation on my part. If these companies were actually breaking the law the sharks would be in a feeding frenzy with lawsuits and other than the one mentioned, I haven't heard of any more.

-KeithP

Now you have.

I am sure there will be more. This is California.

MotionMan

 

[Zenmervolt]

If anyone is looking for a better cite: 51 Cal. 4th 524

I wouldn't be terribly surprised to see the legislature provide some "clarification" on this given the current level of public concern over credit card fraud. Also, the ruling doesn't seem to prohibit the retailer from asking for you ZIP code, only from recording your ZIP code. As long as the information is not retained, there's a decent argument that requiring the ZIP code is permissible under the current law so long as the information is not recorded. If that reading is upheld in later cases, then something like an automated card reader that uses a ZIP code to validate a card but which does not record the ZIP code in its records would be permissible.

ZV

 

[CZroe]

I get prompted for my zip all the time in CA. Zip codes aren't considered "personal" but screening them can easily minimize the success of mass cloning nationally-sourced plain-text account numbers.

 

[Zenmervolt]

Zip codes aren't considered "personal"

Wrong.

...a ZIP code constitutes “personal identification information” as that phrase is used in section 1747.08. Thus, requesting and recording a cardholder's ZIP code, without more, violates the Credit Card Act.

Pineda v. Williams-Sonoma Stores, Inc., 51 Cal. 4th 524, 527-528 (2011).

Note however that this refers only to "requesting and recording", so they can still request it if they don't "record" it.

ZV

 

[FreshCrabLegs]

Thanks for the heads up MotionMan. When you post, I read. =)

I've only read yours, Zenmervolt and a few other quoted posts. So forgive me if this has been posted before.

Regarding the entering of your zipcode on a gas purchase transaction at the pump, I'd like to caution those entering a zipcode not associated with the billing address on the credit card used.

The city I live in incorporated themselves to separate themselves from another town. Therefore they successfully received a new zipcode. As an example, the zip was changed from 90001 to 90003.

At the gas pump, I punched in the old zip, the fuel transaction went through ok, but the next day when I tried to buy a few items at a grocery store, I was told that my card was "on hold" and that I should call my banks customer service number.

Just a small warning about using an incorrect or bogus zipcode.

 

[JEDIYoda]

At least it is in California.

Just reading about this in a legal paper, so I found a good quote to share:

Requiring a customer's ZIP code [for a credit card transaction] is illegal in California where the state's 1971 law prohibits merchants from requesting or requiring a card-holder's "personal identification information" as a condition of accepting the card for payment. The California Supreme Court has ruled that the ZIP code qualifies as personal identification information because it is part of the cardholder's address. Companies face fines of $250-$1000 for each violation. (See Pineda v. Williams-Sonoma Stores Inc., 2011 DJDAR 2278 (Feb. 10, 2011).)

So, if a retailer asks for your ZIP code (at least in California), refuse to give it.

Viva privacy!!!

MotionMan

But the state law doesn`t make it illegal for the card companies themselves to require a zip code...catch 22..lol

 

[Double Trouble]

But the state law doesn`t make it illegal for the card companies themselves to require a zip code...catch 22..lol

From what I can tell, it's not a catch 22 at all. The retailer can get the zip code for verification as long as it's not recording it. The issue probably isn't that they are getting the zip for verification, it's that many companies want to capture that information for marketing and research purposes. In fact, when stores ask for my zip code I usually provide a bogus one and my card works just fine, so I know it's not being used for verification.

This is just a CA law, so it doesn't affect other states as far as I know.

 

[bruceb]

When they ask for your Zip code on a cash sale, that is just for their catalog / flyer mailing lists. They don't know who you are, but mailings are done enmasse based on zip code. More customers from one zip are likely to get more ads. Just say "I am already on the mailing list" and they won't ask for zip code.

 

[bobdole369]

With the exception of a very rare station, every place I've ever gotten gas charges a fee if you use plastic. The 8 stations in my area all charge .40 - .50 cents. One even gives me 2 cents a gallon off if I pay cash.

I found it incredibly offensive - when I went over to cali and noticed nearly all stations did this. Nobody dare charge extra for credit over here in America's Wang. If there is such a station that does, it is quickly pushed out of business. It is simply not done. The 30 stations or so in my immediate area charge one price - usually below avg (as we are quite near a major gasoline port that serves nearly all of South FL.)

 

[erikistired]

only assholes and people who want to use stolen credit cards have a problem with this. congrats california.

 

[bobdole369]

Wait, you guys have to submit your zip code when...paying for gas? What the fuck?

HA! You must live in the sticks. It is that way in the more "urban" (read urban as ghetto) areas.

I bet you can just pick up a pump and have the retailer turn it on for you right? No way that happens here, gotta pay first period. No talkin to the dude, he ain't stupid. No money - no pumpy.

 

[WelshBloke]

I found it incredibly offensive - when I went over to cali and noticed nearly all stations did this. Nobody dare charge extra for credit over here in America's Wang. If there is such a station that does, it is quickly pushed out of business. It is simply not done. The 30 stations or so in my immediate area charge one price - usually below avg (as we are quite near a major gasoline port that serves nearly all of South FL.)

Youre very easily offended.

Thats, what, 50 cents on a full tank?

 

[CZroe]

From what I can tell, it's not a catch 22 at all. The retailer can get the zip code for verification as long as it's not recording it. The issue probably isn't that they are getting the zip for verification, it's that many companies want to capture that information for marketing and research purposes. In fact, when stores ask for my zip code I usually provide a bogus one and my card works just fine, so I know it's not being used for verification.

This is just a CA law, so it doesn't affect other states as far as I know.

When I first came to CA my card was declined REPEATEDLY when I would give it either my old or my new zip code. When I called, they had somehow made my zip code an out of state place that I stayed for a few months when I was barely 17. By this point, I was 28, so I have NO CLUE what prompted that.

 

[SunnyD]

Let's see... your credit card already has your name, credit card number, and other PII embedded on it. Sue credit card companies?

 

[Beev]

No gas stations I've ever been to have asked for my zip code. Sonic has, though, and I just put in 90210 and it works fine.

 

[SunnyD]

Also, SOME retailers ask this to determine what sales tax to charge you. Curious note, I live in a zip code that straddles two counties. Each county has a different tax rate. I've had retailers ask me which county I live in (because their computer asks to determine tax), and I obviously choose the cheaper of the two counties.

 

[foghorn67]

I have to say I am not surprised the court managed to misinterpret a law once again, creating yet another major conflict for no reason. Life would be simpler without courts.

There are courts in the Bible.

 

[FelixDeCat]

only assholes and people who want to use stolen credit cards have a problem with this. congrats california.

:thumbsup::thumbsup::thumbsup::thumbsup:

 

[jonks]

I have to say I am not surprised the court managed to misinterpret a law once again, creating yet another major conflict for no reason. Life would be simpler without courts.

No, life would be simpler without the need for courts, i.e. conflicts requiring ostensibly neutral 3rd party intervention.