TITLE: Relating to requiring photo identification for credit card purchases.

SUMMARY: Relating to requiring photo identification for credit card purchases.

FULL TEXT:
AN ACT relating to requiring photo identification for credit card purchases. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle A, Title 11, Business & Commerce Code, is amended by adding Chapter 506 to read as follows: CHAPTER 506. REQUIRING VERIFICATION OF IDENTITY FOR CREDIT CARD PURCHASES Sec. 506.001. DEFINITIONS. In this chapter: (1) "Cardholder" means the person named on the face of a credit card to whom or for whose benefit the card is issued. (2) "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. (3) "Merchant" means a person in the business of selling or leasing goods or services. (4) "Photo identification" means a card or other document that: (A) is issued by a governmental entity to identify an individual; and (B) displays a photograph of the individual identified on the card or other document. Sec. 506.002. REQUIRING PHOTO IDENTIFICATION FOR CREDIT CARD TRANSACTION. (a) A merchant may not accept a credit card for payment in a face-to-face transaction unless the merchant requires the individual presenting the credit card to provide photo identification verifying the individual's identity as the cardholder. (b) Subsection (a) does not apply if the merchant requires the individual presenting the credit card for payment to provide the individual's zip code to verify the individual's identity as authorized by Section 505.002. SECTION 2. This Act takes effect September 1, 2013.