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 Texas? What are the requirements?

Based on the documents provided, it is illegal to obtain, possess, transfer, or use credit card or debit card information without the consent of the account holder and with the intent to harm or defraud another person, as stated in Tex. Penal Section 32.315 [1.1]. Therefore, collecting credit card information from participants in Texas without their consent and with the intent to harm or defraud them is illegal.

If you are a credit card issuer conducting campus credit card marketing activities in Texas, you must comply with the requirements of Tex. Bus. & Com. Section 761.051 and Tex. Bus. & Com. Section 761.101 [3.3][3.4]. Tex. Bus. & Com. Section 761.051 prohibits credit card issuers from engaging in campus credit card marketing activities outside of a campus location designated by the governing board of the postsecondary educational institution for that purpose and at a time other than a time designated by the governing board. Tex. Bus. & Com. Section 761.101 requires credit card issuers who conduct campus credit card marketing activities to develop financial educational material in consultation with or subject to approval by the postsecondary educational institution. The financial educational material must include a clear and practical explanation of effective money management skills, key financial terms and phrases related to credit cards and personal debt management, credit educational materials and programs offered by the credit card issuer that are available to student cardholders after they have opened an account, resources to assist students in understanding credit reports and credit scores and the consequences of irresponsible credit card use, and the importance of responsible credit practices, including timely paying the minimum amount due each month and reducing costs by paying as much of the balance as possible.

Tex. Bus. & Com. Section 508.002 allows merchants to require photo identification verifying the individual’s identity as the cardholder in a point of sale transaction [2.1]. Tex. Bus. & Com. Section 761.052 prohibits credit card issuers from offering a gift or other incentive in exchange for the completion of a credit card application as part of a campus credit card marketing activity unless the credit card issuer provides financial educational material developed under Section 761.101 to the individual [3.1]. Tex. Bus. & Com. Section 502.002 prohibits printing on a receipt or other document that evidences the transaction and is provided to a cardholder more than the last four digits of the credit card or debit card account number or the month and year that the credit card or debit card expires [4.1].

Therefore, if you are not a credit card issuer conducting campus credit card marketing activities in Texas, it is illegal to collect credit card information from participants without their consent and with the intent to harm or defraud them as stated in Tex. Penal Section 32.315 [1.1].

Source(s):
Jurisdiction

Texas