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

Requirements for Collecting Debit Card Information in New York

Based on the information provided in the context documents, there are certain requirements that must be met when collecting debit card information from participants in New York.

According to NYCL GBS § 520-A, 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:

• are carbonless; or
• 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.

Additionally, any person, firm, partnership, association or corporation which accepts credit or debit cards used for credit or debit card transactions between the credit card or debit card holder and seller, shall only use 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:

• are carbonless; or
• 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 card or debit card holder and issuer to complete the credit or debit card transaction.

Furthermore, no person, firm, partnership or corporation which accepts credit or debit cards for the transaction of business shall require the credit or debit card holder to write on the credit or debit card transaction form, nor shall it write or cause to be written on such form or on any attachment thereto, any personal identification information, including but not limited to the credit or debit card holder’s address or telephone number, that is not required by the credit or debit card issuer to complete the credit or debit card transaction.

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

NYCL GBS § 512 states that 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.

Conclusion

Based on the above requirements, it is possible to collect debit card information from participants in New York, but the information collected must be limited to what is necessary to complete the transaction and must not include any personal identification information that is not required by the credit or debit card issuer. Additionally, the forms used for the transaction must be carbonless or must not render a separate piece of paper that readily identifies the cardholder by name or number. Any liability imposed upon a holder for the unauthorized use of a credit card or a debit card shall not be greater than that imposed upon the holder of a credit card under the provisions of the Truth in Lending Act.

Jurisdiction

New York

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