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Can I collect debit card information from participants in Kentucky? What are the requirements?
Based on the additional context documents, the answer to your query is as follows:
Collection of Debit Card Information in Kentucky
There are no specific statutes in Kentucky that prohibit the collection of debit card information from participants. However, it is important to ensure that any collection of such information is in compliance with applicable laws and regulations.
Prohibited Acts
It is illegal to receive a credit or debit card that was obtained, taken, or retained under circumstances that constitute a violation of KRS 434.570 to 434.610 [1.1]. It is also illegal to receive a credit or debit card that was lost, mislaid, or delivered under a mistake as to the identity or address of the cardholder, and retain possession with the intent to use it or transfer it to a person other than the issuer or the cardholder [1.3].
Fraudulent Use of Credit or Debit Card
It is a criminal offense for a cardholder to fraudulently use a credit or debit card to obtain money, goods, services, or anything else of value after reporting the card lost, stolen, or not received [1.4].
Use of Scanning Device or Reencoder
It is prohibited to use a scanning device to access, read, obtain, memorize, or store, temporarily or permanently, information encoded on the magnetic strip or stripe of a payment card with the intent to defraud the authorized user, the issuer of the authorized user’s payment card, or a merchant [1.5].
Licensing Requirements
If the collection of debit card information is related to deferred deposit transactions, the licensee must provide the customer with the disclosures required by the Consumer Credit Protection Act [3.1]. Additionally, licensees engaging in deferred deposit transactions are required to file an annual report with the commissioner containing certain information, including the location of all places of business operated by the licensee and the nature of the business conducted at each location [3.3]. Each application for a license must be accompanied by an investigation fee of five hundred dollars ($500) for Kentucky residents and five hundred dollars ($500) for nonresidents of Kentucky for each location [3.2].
In summary, while there are no specific statutes that prohibit the collection of debit card information, it is important to ensure that any collection of such information is in compliance with applicable laws and regulations, and that the licensee complies with all licensing requirements.
[1.1]: KYRS 434.570 to 434.610 [1.3]: KYRS 434.580 [1.4]: KYRS 434.655 [1.5]: KYRS 434.675 [3.1]: Consumer Credit Protection Act [3.2]: KYRS 286.9-060 [3.3]: Deferred Deposit Transactions
Source(s):
- [1.1] Receipt of card in violation of KRS 434.570 to 434.610.
- [1.3] Receipt of credit or debit card lost, mislaid, or delivered by mistake, with intent to use or transfer.
- [1.4] Fraudulent use of credit or debit card after reporting it lost, as stolen, or not received.
- [1.5] Use of scanning device or reencoder to obtain payment card information prohibited.
- [3.1] Requirements of disclosure by licensees – Fees and service charges – Acceptance, payment, and deposit of checks.
- [3.2] Materials to accompany application – Investigation fee.
- [3.3] Annual reports filed by licensees with commissioner.
Jurisdiction
Kentucky