Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I collect credit card information from participants in New York? What are the requirements?

Yes, you can collect credit card information from participants in New York, but there are several requirements that must be met.

Disclosure Requirements

Prior to entering into a contract for services, the credit card registration service shall make the following disclosures [3.1]:

  • a notice that the purchase of the services or the renewal thereof is not required for a consumer to retain his credit card or access device;
  • a concise statement regarding the limitations of a consumer’s liability for unauthorized use of credit cards or access devices as established by the acts of Congress entitled “Truth in Lending Act” and “Electronic Fund Transfer Act” and the regulations thereunder, as such acts and regulations may from time to time be amended.

Such disclosures if made orally shall also be made in writing by the credit card registration service to the subscriber no later than thirty days after the contract for services is entered into.

Credit Information

Every issuer of credit cards to natural persons residing in New York shall set forth on each solicitation, application, and monthly billing statement mailed or otherwise presented to such persons, a notice stating “New York residents may contact the New York state department of financial services by telephone or visit its website for free information on comparative credit card rates, fees, and grace periods.” [1.1]

Credit Card Surcharge Prohibited

No seller in any sales transaction may impose a surcharge on a holder who elects to use a credit card in lieu of payment by cash, check, or similar means. [1.3]

Information Reporting Requirements

On or before July 1st of each year, beginning in 2019, every consumer credit reporting agency that is required to be registered pursuant to section 201.2 of this Part shall report to the superintendent, in a statement subscribed and affirmed as true under penalties of perjury, the information requested by the superintendent. [2.1]

Credit and Debit Card Transaction Forms Required

Any person, firm, partnership, association or corporation which issues forms used for credit or debit card transactions between the credit card or debit card holder and seller, shall only issue such credit or debit card forms, except for such forms utilized for a special purpose incidental but related to the actual purchase and sale agreement including but not limited to shipping, delivery or installment of purchased merchandise or special orders, which: a. are carbonless; or b. after the transaction is complete, do not render a separate piece of paper, carbon or otherwise, which readily identifies the cardholder by name or number, other than those necessary for use by the seller, credit or debit card holder and issuer to complete the credit or debit card transaction. [1.2]

Limitation of Liability for Unauthorized Use of a Credit Card or a Debit Card

A provision which imposes liability upon a holder for a cash advance or loan or for the purchase or lease of property or services obtained by the unauthorized use of a credit card or a debit card shall not be enforceable to the extent that it imposes a greater liability upon the holder than is imposed upon the holder of a credit card under the provisions of the act of congress entitled “Truth in Lending Act” and the regulations thereunder, as such act and regulations may from time to time be amended. [1.4]

Based on the above information, it is important to make the necessary disclosures, comply with the relevant laws and regulations, and use appropriate credit and debit card transaction forms when collecting credit card information from participants in New York.

Source(s):
Jurisdiction

New York