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class-action lawsuits against retailers asking for ZIP-codes


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94 replies to this topic

#1 drab

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Posted 12 April 2009 - 01:32 AM

Some attorneys are filing class actions against retailers alleging that retailers can't ask customers for any information at the time of a credit-card transaction - even ZIPcodes - without breaking the law. A class-action lawsuit was filed against Old Navy challenging this very practice.

http://www.sfgate.co.../EDHI16USCF.DTL



#2 athensgaguy

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Posted 12 April 2009 - 08:17 AM

Sounds like they wouldn't have to worry about class action lawsuits if they just didn't ask for any information.

#3 centex

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Posted 12 April 2009 - 08:42 AM

If they cannot demonstrate the same question is asked of people paying cash, I hope they get SLAPP'ed silly. Asking for ZIP at the POS often has more to do with tracking a customer base than ANYTHING to do with the method of purchase. Someone is hoping for a quick payday...there is no compelling privacy interest there...

#4 GEORGE

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Posted 12 April 2009 - 10:37 AM

SOME PEOPLE HAVE TOO MUCH TIME ON THEIR HANDS

A ZIP CODE HURTS NOBODY

IF IT IS WITH A CREDIT CARD...IT IS BETTER THAN ASKING FOR A DRIVER'S LICENSE

IF IT IS JUST A SURVEY AND YOU FEAR SOMETHING...FEEL FREE TO USE ONE OF THE MANY ZIP CODES OF DOWNTOWN LA

90021


#5 Uncle Leo

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Posted 12 April 2009 - 10:55 AM

If they cannot demonstrate the same question is asked of people paying cash, I hope they get SLAPP'ed silly. Asking for ZIP at the POS often has more to do with tracking a customer base than ANYTHING to do with the method of purchase. Someone is hoping for a quick payday...there is no compelling privacy interest there...


Yep.

Oh, and besides... you can always decline to answer, too. I did that a few times before I figured out it wasn't a big deal, and nobody ever gave me any grief about it.

#6 Nana83

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Posted 12 April 2009 - 11:00 AM

I gladly give my zip code, because I'm hopeful that retailers will start bringing more businesses to my area instead of folks in my area having to drive across town to shop.

#7 jdmc1973

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Posted 12 April 2009 - 11:00 AM

Hmmmm....and all this time I thought they were asking for my zip code to verify it against the billing address of my credit card to prevent fraud. I figured that's what it was since it always asks me at the gas pump too.

#8 GEORGE

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Posted 12 April 2009 - 11:05 AM

Where the customers come from hurts nobody

We did them a couple of times

THE ONLY ONES WHO HAD A MAJOR ATTITUDE WERE THE CASH CUSTOMERS

:lol:

Edited by GEORGE, 12 April 2009 - 11:06 AM.


#9 Uncle Leo

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Posted 12 April 2009 - 11:13 AM

Hmmmm....and all this time I thought they were asking for my zip code to verify it against the billing address of my credit card to prevent fraud. I figured that's what it was since it always asks me at the gas pump too.


At the gas pump it generally is to help combat fraud. When a clerk in a retail store asks, it's generally to track their customer base so they know where best to focus their marketing, potential new stores, etc., and they will generally ask all customers regardless of payment method.

#10 athensgaguy

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Posted 12 April 2009 - 11:42 AM

Hmmmm....and all this time I thought they were asking for my zip code to verify it against the billing address of my credit card to prevent fraud. I figured that's what it was since it always asks me at the gas pump too.


At the gas pump it generally is to help combat fraud. When a clerk in a retail store asks, it's generally to track their customer base so they know where best to focus their marketing, potential new stores, etc., and they will generally ask all customers regardless of payment method.


I guess the lawsuits are using the CA statutes that makes it illegal to record information on the CC user at the time of the sale, if the zip code is kept.

#11 GEORGE

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Posted 12 April 2009 - 01:37 PM

LIKE I HAVE ROOM ON THE WALL FOR ANOTHER $0.18 CLASS ACTION CHECK

:lol:

#12 Uncle Leo

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Posted 12 April 2009 - 02:19 PM

Hmmmm....and all this time I thought they were asking for my zip code to verify it against the billing address of my credit card to prevent fraud. I figured that's what it was since it always asks me at the gas pump too.

At the gas pump it generally is to help combat fraud. When a clerk in a retail store asks, it's generally to track their customer base so they know where best to focus their marketing, potential new stores, etc., and they will generally ask all customers regardless of payment method.

I guess the lawsuits are using the CA statutes that makes it illegal to record information on the CC user at the time of the sale, if the zip code is kept.


I wouldn't be surprised that that's the tact they'd use, but as has been mentioned, unless they can prove that cash customers do not get asked the same question I think they'd be hard pressed to get anything out of it. Besides, zip code alone is hardly identifying information.

#13 Unas2k5

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Posted 12 April 2009 - 02:22 PM

The transaction doesn't go thru if you dont key in your correct billing zip code.

#14 kevatucr

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Posted 12 April 2009 - 02:41 PM

The transaction doesn't go thru if you dont key in your correct billing zip code.

Are you sure that's even with a debit transaction?

#15 Unas2k5

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Posted 12 April 2009 - 02:58 PM

The transaction doesn't go thru if you dont key in your correct billing zip code.

Are you sure that's even with a debit transaction?


Yes, my father has a couple gas stations and the system requires that you key in the billing address for your credit card. It's just added security. No complaints.

Oh and for debit , just their pin.

Edited by Unas2k5, 12 April 2009 - 02:59 PM.


#16 Continental

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Posted 12 April 2009 - 04:52 PM

Some attorneys are filing class actions against retailers alleging that retailers can't ask customers for any information at the time of a credit-card transaction - even ZIPcodes - without breaking the law. A class-action lawsuit was filed against Old Navy challenging this very practice.

In addition to the credit card rules, state laws prohibit merchants from requiring additional information when accepting credit cards. Merchants cannot make note of your phone number, address, driver's license or other personal information. They can't even hint to consumers that such information is required. Consumers can sue merchants that require additional information with credit card transactions and win big money. Civil penalties of $250 for the first violation and $1,000 for subsequent violations are awarded to consumers when merchants break this law.

CREDIT CARD SIGNATURE IS ALL THE ID NEEDED

When you pay for merchandise with a Visa card, MasterCard, or American Express any store that accepts these cards should accept yours too, no questions asked. It's part of the deal that merchants agree to when they become participating members.

They must check your signature and the card - electronically or by telephone - to be sure it's valid. Once the answer comes up yes, they can go ahead and charge. They can't ask you for any further identification - not a license plate number, Social Security number, proof of address, phone number or photo ID.

Your personal ID isn't needed because Visa, MasterCard, and American Express all guarantee payment on cards that have been properly checked. If the issuer mistakenly authorizes a sale on a bad card, it should make good. MasterCard says that merchants receive instant settlement. The contract MasterCard merchants sign specifically prevents them from asking for personal ID.

Unfortunately, not all merchants play by the rules. Some, apparently, haven't read them.

WHAT YOU CAN DO

MasterCard wants to hear about merchants who break their rules. Send the name and address and an account of what happened to MasterCard WorldWide 2000 Purchase St. Purchase, NY 10577 or call 1-800-300-3069. The merchant's bank will get a stiff letter, ordering it to investigate and bring the offending store into line - or pay a $2,000 fine. You may also report violations online:

http://www.mastercar...violations.html

Visa enforces the same rules as MasterCard. "When we hear about a violation, we ask the bank that signed the merchant to get together with the merchant and see that the practice is stopped," Visa representative states. To report a merchant, send a letter to the bank that that issued your Visa card or call 1-800-VISA-911.

American Express also prohibits merchants from asking for IDs. "All a merchant is supposed to do is take an imprint, make sure the signature matches and swipe the card through the terminal, to get authorization."

#17 noverRhead

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Posted 12 April 2009 - 08:00 PM

At our local Kmart, you key in your zip and your pin code for a debit card

#18 Continental

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Posted 13 April 2009 - 05:27 AM

LIKE I HAVE ROOM ON THE WALL FOR ANOTHER $0.18 CLASS ACTION CHECK

Worth every penny to stop these crooks from demanding zip codes at POS.

#19 centex

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Posted 13 April 2009 - 08:46 AM

The suits sound like an opportunity to do nothing more than profit from a poorly written statute. A ZIP at the POS does nothing in the way of serving as a "personal identifier" other than to put you in a pool of several thousand people.

And in the alternative, if the ZIP is actually being used in the same manner as the pump authorizations were using it, there should be massive applause for at least attempting to stem the losses associated with fraudulent use of cards. Zero liability has been shown to be a crock...I am living proof of that.

#20 GEORGE

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Posted 13 April 2009 - 08:48 AM

LIKE I HAVE ROOM ON THE WALL FOR ANOTHER $0.18 CLASS ACTION CHECK

Worth every penny to stop these crooks from demanding zip codes at POS.

ZIP CODE is far from the same thing as a DRIVER'S LICENSE
==============================
ZIP CODE or DRIVER'S LICENSE...ZIP CODE WINS HANDS DOWN
==============================
YOU WANT THE $0.18 CHECK???

:rolleyes:

Edited by GEORGE, 13 April 2009 - 08:53 AM.


#21 foodporncess

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Posted 13 April 2009 - 09:02 AM

This suit sounds silly. If you don't want to give your zip, don't. I very nicely say no all the time when they ask for it at big box stores. My city doesn't need another one :rolleyes: And at the pump, I think it's great that they ask for it since it's a fraud thing.

#22 Continental

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Posted 13 April 2009 - 12:42 PM

ZIP CODE or DRIVER'S LICENSE

Both illegal. Hence the lawsuits..

#23 nothingtolose

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Posted 13 April 2009 - 12:47 PM

Some attorneys are filing class actions against retailers alleging that retailers can't ask customers for any information at the time of a credit-card transaction - even ZIPcodes - without breaking the law. A class-action lawsuit was filed against Old Navy challenging this very practice.

http://www.sfgate.co.../EDHI16USCF.DTL


Amex Blue sometimes triggers a zip code question where my other Visa/MC don't. I thought it's an Amex precaution not a retailer-specific policy but I never looked into it.

#24 SamuraiJack

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Posted 13 April 2009 - 12:56 PM

I dont mind giving a Zip.. i figure it is for tracking since they do it when I need cash.. its the ones who want my whole freakin street and email address that piss me off.. like I dont get enough junk mail...

#25 Continental

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Posted 13 April 2009 - 05:56 PM

I very nicely say no all the time when they ask

No one should ever have to be put through such nonsense.




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