§ 520-A — Certain credit and debit card transaction forms required

New York § 520-A

• Jurisdiction: New York
• Law GBS: General Business
• Art. 29-A: Unauthorized or Improper Use of Credit Cards and Debit Cards

Text

§ 520-a. Certain credit and debit card transaction forms required. 1.\nAny person, firm, partnership, association or corporation which issues\nforms used for credit or debit card transactions between the credit card\nor debit card holder and seller, shall only issue such credit or debit\ncard forms, except for such forms utilized for a special purpose\nincidental but related to the actual purchase and sale agreement\nincluding but not limited to shipping, delivery or installment of\npurchased merchandise or special orders, which:\n a. are carbonless; or\n b. after the transaction is complete, do not render a separate piece\nof paper, carbon or otherwise, which readily identifies the cardholder\nby name or number, other than those necessary for use by the seller,\ncredit or debit card holder and issuer to complete the credit or debit\ncard transaction.\n 2. Any person, firm, partnership, association or corporation which\naccepts credit or debit cards used for credit or debit card transactions\nbetween the credit card or debit card holder and seller, shall only use\ncredit or debit card forms except for such forms utilized for a special\npurpose incidental but related to the actual purchase and sale agreement\nincluding but not limited to shipping, delivery or installment of\npurchased merchandise or special orders, which:\n a. are carbonless; or\n b. after the transaction is complete, do not render a separate piece\nof paper, carbon or otherwise, which readily identifies the cardholder\nby name or number, other than those necessary for use by the seller,\ncredit card or debit card holder and issuer to complete the credit or\ndebit card transaction. No person, firm, partnership, association or\ncorporation which accepts credit or debit cards for the transaction of\nbusiness shall be deemed to have violated the provisions of this\nsubdivision, if such person, firm, partnership, association or\ncorporation shows by a preponderance of evidence that the violation was\nnot intentional and resulted from bona fide error made notwithstanding\nthe maintenance of procedures reasonably adopted to avoid any such\nerror.\n 3. No person, firm, partnership or corporation which accepts credit or\ndebit cards for the transaction of business shall require the credit or\ndebit card holder to write on the credit or debit card transaction form,\nnor shall it write or cause to be written on such form or on any\nattachment thereto, any personal identification information, including\nbut not limited to the credit or debit card holder's address or\ntelephone number, that is not required by the credit or debit card\nissuer to complete the credit or debit card transaction; provided,\nhowever, that the credit or debit card holder's address and telephone\nnumber may be required on such form or attachment thereto where (i) such\ninformation is necessary for shipping, delivery or installation of\npurchased merchandise or for special orders; or (ii) the person, firm,\npartnership or corporation processes credit or debit card transactions\nby mailing transaction forms to a designated bankcard center for\nsettlement.\n 4. No person, firm, partnership, association or corporation which\naccepts a personal check, gift certificate, traveler's check or money\norder in payment for goods or services used or bought for use primarily\nfor personal, family or household purposes, and which as a condition of\nsuch acceptance requires that the check drawer or redeemer of the gift\ncertificate, traveler's check or money order provide a credit or charge\ncard, shall record on such check, gift certificate, traveler's check or\nmoney order or elsewhere, the card account number. Nothing in this\nsubdivision shall be construed to prohibit any person, firm,\npartnership, association or corporation, as a condition for the\nacceptance of a check, gift certificate, traveler's check or money order\nin payment for goods or services from: (i) requesting a purchaser to\ndisplay a credit or charge card as a means of identification, or as an\nindication of credit worthiness or financial responsibility; or (ii)\nrecording on the check, gift certificate, traveler's check or money\norder the type of credit or charge card so displayed and/or the credit\nor charge card expiration date; provided, further, that nothing in this\nsubdivision shall require any business entity to accept a check, gift\ncertificate, traveler's check or money order in payment for goods or\nservices whether or not a credit or charge card is displayed.\n 4-a. a. No person, firm, partnership, association, limited liability\ncompany, corporation, or other entity that accepts charge, credit, or\ndebit cards for the transaction of business shall print the expiration\ndate of the charge, credit, or debit card nor shall any person, firm,\ncorporation, partnership, association, limited liability company, or\nother entity print more than the last five digits of the charge, credit,\nor debit card account number upon any receipt provided to the card\nholder.\n b. This subdivision shall apply only to receipts that are\nelectronically printed and shall not apply to transactions in which the\nsole means of recording the person's charge, credit, or debit card\nnumber is by handwriting or by an imprint or copy of the credit card.\n c. The provisions of this subdivision shall apply to all cash\nregisters or other machines or devices, which electronically print\nreceipts for charge, credit, or debit card transactions, that are placed\nin service on or after January first, two thousand four.\n d. For all cash registers or other machines or devices that\nelectronically print receipts for charge, credit, or debit card\ntransactions in service prior to January first, two thousand four, the\nprovisions of this subdivision shall not apply until January first, two\nthousand seven.\n e. A person, firm, corporation, partnership, association, limited\nliability company, or other entity who violates this subdivision shall\nbe given notice with specificity of such violation and be granted two\nweeks to correct such violation in its entirety. If such violation is\nnot corrected in its entirety at the end of such two-week period, the\nviolation shall be punishable by a civil penalty of five hundred\ndollars, and the violator shall be granted an additional one week in\nwhich to correct such violation in its entirety. If such violation is\nnot corrected in its entirety at the end of such one-week period, such\nviolation shall be punishable by a civil penalty of one thousand dollars\nper week until such violation is corrected in its entirety. The\naggregate penalties imposed on an individual person, firm, corporation,\npartnership, association, limited liability company, or other entity for\nviolations of this subdivision shall not exceed four thousand five\nhundred dollars for violations occurring on the same premises.\n 5. A violation of subdivision one of this section shall be punishable\nby a civil fine not to exceed one thousand dollars. A violation of\nsubdivision two, three, or four of this section, if such violation\nconstitutes the first such offense by such person shall be punishable by\na civil fine not to exceed two hundred fifty dollars. The second offense\nand any offense committed thereafter shall be punishable by a civil fine\nnot to exceed one thousand dollars.\n 6. Whenever there shall be a violation of this section an application\nmay be made by the attorney general in the name of the people of the\nstate of New York to a court or justice having jurisdiction by a special\nproceeding to issue an injunction, and upon notice to the defendant of\nnot less than five days, to enjoin and restrain the continuance of such\nviolation; and if it shall appear to the satisfaction of the court or\njustice that the defendant has, in fact, violated this section, an\ninjunction may be issued by the court or justice, enjoining and\nrestraining any further violations, without requiring proof that any\nperson has, in fact, been injured or damaged thereby. In any such\nproceeding, the court may make allowances to the attorney general as\nprovided in paragraph six of subdivision (a) of section eighty-three\nhundred three of the civil practice law and rules, and direct\nrestitution. In connection with any such proposed application the\nattorney general is authorized to take proof and make a determination of\nthe relevant facts and to issue subpoenas in accordance with the civil\npractice law and rules.\n