Can I collect debit card information from participants in California? What are the requirements?

Debit Card Information Collection Requirements in California

Yes, you can collect debit card information from participants in California, but you must comply with certain requirements. According to Section 1748.30 of the California Civil Code, a debit card is defined as any card that is used to obtain money, property, labor, or services from a consumer asset account. A debit card issuer is any person who issues a debit card or the agent of that person for that purpose. A debit cardholder is a natural person to whom a debit card is issued.

To collect debit card information from participants in California, you must comply with the following requirements:

1. Authorization: You must obtain authorization from the debit cardholder to collect their debit card information.
2. Adequate Notice: You must provide adequate notice to the debit cardholder regarding the collection of their debit card information. Adequate notice has the same meaning as found in subdivision (k) of Section 1747.02.
3. Unauthorized Use: You must not use the debit card information for any unauthorized use. Unauthorized use means the use of a debit card by a person, other than the debit cardholder, to initiate an electronic fund transfer from the debit cardholder’s account without actual authority to initiate the transfer and from which the debit cardholder receives no benefit.
4. Compliance: You must comply with all other applicable laws and regulations related to the collection and use of debit card information.

In addition, Section 1748.31 of the California Civil Code states that a debit cardholder shall be liable for an unauthorized use of a debit card only if certain conditions are met. For example, the liability is not in excess of fifty dollars ($50), and the debit card issuer has given adequate notice to the debit cardholder of the potential liability.

Conclusion

To collect debit card information from participants in California, you must obtain authorization, provide adequate notice, avoid unauthorized use, and comply with all applicable laws and regulations. Additionally, you should be aware of the conditions under which a debit cardholder may be liable for unauthorized use of their debit card.

Jurisdiction

California

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