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Can I collect credit card information from participants in California? What are the requirements?
Collecting Credit Card Information in California
Based on the California Civil Code, there are restrictions on collecting personal identification information from credit cardholders in California. Specifically, no person, firm, partnership, association, or corporation that accepts credit cards for the transaction of business shall request or require as a condition to accepting the credit card as payment in full or in part for goods or services, the cardholder to write any personal identification information upon the credit card transaction form or otherwise. Additionally, they cannot request or require as a condition to accepting the credit card as payment in full or in part for goods or services, the cardholder to provide personal identification information, which the person, firm, partnership, association, or corporation accepting the credit card writes, causes to be written, or otherwise records upon the credit card transaction form or otherwise [2.1].
However, there are some exceptions to this rule. For example, personal identification information may be required if the credit card is being used as a deposit to secure payment in the event of default, loss, damage, or other similar occurrence. It may also be required if the person, firm, partnership, association, or corporation accepting the credit card is contractually obligated to provide personal identification information in order to complete the credit card transaction. Additionally, personal identification information may be required for a special purpose incidental but related to the individual credit card transaction, including, but not limited to, information relating to shipping, delivery, servicing, or installation of the purchased merchandise, or for special orders [2.1].
Therefore, in general, collecting personal identification information from credit cardholders in California is restricted, but there are some exceptions.
Source(s):
Jurisdiction
California