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

Collecting Debit Card Information in West Virginia

Based on the documents provided, it appears that you may be able to collect debit card information from participants in West Virginia under certain circumstances.

Requirements for Collecting Debit Card Information

The State Auditor and the State Treasurer may jointly establish a state-stored value debit card program known as the “West Virginia Pay Card” for recipients of employee payroll, retirement benefits, entitlement programs, vocational rehabilitation services funds disbursed pursuant to §18-10A-6 of this code, foster care and adoption stipends, subsidies, and other payments made under programs administered by the Department of Health and Human Resources, payments to contractors of the state, or other eligible payees of state funds, who do not possess a federally insured depository institution account [1.1].

If you are administering the West Virginia Pay Card program, you may collect debit card information from participants who do not possess a federally insured depository institution account. The State Auditor shall include an unbanked recipient in the program upon determining that good cause exists. Once an unbanked recipient is included in the program, the State Auditor shall provide the State Treasurer with an electronic file containing the necessary unbanked recipient information [1.1].

However, it is important to note that the State Auditor and the State Treasurer shall use every reasonable effort to encourage all identified unbanked recipients to obtain a federally insured depository account [1.1].

Use and Disclosure of Information Relating to Payment of Taxes by Credit Card and Debit Card

Information obtained by any person other than the taxpayer in connection with payment of taxes by a credit card or debit card shall be treated as confidential, and is covered under the confidentiality provisions of W. Va. Code §11-10-5d, regardless whether the information is received from the Department or from any other person, including the taxpayer. No person other than the taxpayer shall use or disclose the information except as follows [2.1]:

  • Card issuers, regulated financial corporations, or other persons participating in the credit card or debit card transaction may use or disclose the information for the purpose and in direct furtherance of servicing cardholder accounts, including the resolution of errors in accordance with Section 4 of this rule.
  • Card issuers, regulated financial corporations or other persons participating in the credit card or debit card transaction may use and disclose the information only for the purpose and in direct furtherance of any of the following activities: assessment of statistical risk and profitability, transfer of receivables or accounts or any interest therein, audit of account information, compliance with Federal, State, or local law, and cooperation in properly authorized civil, criminal, or regulatory investigations by Federal, State, or local authorities.
  • Use or disclosure of information relating to credit card and debit card transactions for purposes related to any of the following is not authorized: sale or exchange of the information separate from the underlying receivable or account, marketing for any purpose, and furnishing the information to any credit reporting agency or credit bureau, except with respect to the aggregate amount of a cardholder’s account, with the amount attributable to payment of taxes not separately identified.

Credit card and debit card account numbers in the possession of the Commissioner or the State Treasurer that have been submitted in payment of state taxes are confidential and exempt from the provision of W. Va. Code §29b-1-1, et seq. (Freedom of Information Act) [2.1].

Convenience Fees or Service Fees

The Treasurer may authorize the use of convenience fees or service fees unless use is prohibited by law. The Treasurer shall set the amount of the convenience fees or service fees authorized. The use of convenience fees or service fees shall follow the merchant rules or regulations established by card brands. The Treasurer may contract with one or more card payment service providers [3.2].

Conclusion

Based on the information provided in the documents, you may be able to collect debit card information from participants in West Virginia if you are administering the West Virginia Pay Card program and the participants do not possess a federally insured depository institution account. However, it is important to encourage participants to obtain a federally insured depository account.

Regarding the use and disclosure of information relating to payment of taxes by credit card and debit card, the information obtained by any person other than the taxpayer shall be treated as confidential, and no person other than the taxpayer shall use or disclose the information except as specified in the documents.

Finally, the Treasurer may authorize the use of convenience fees or service fees unless use is prohibited by law.

Source(s):
Jurisdiction

West Virginia