wex@dali.pws.bull.com (Buckaroo Banzai) (12/01/90)
[NOTE: this article is posted to three (3) groups because it is relevant to readers of all three. If you followup, *please* edit the newsgroups: line appropriately.] The following is excerpted from an article in the 11/30/90 Boston Globe Business section. CNN is broadcasting a similar story on their nightly national newshour. What I find most interesting is the response of MasterCard and Visa to the Radio Shack claim (see below): GETTING PICKY ABOUT PLASTIC "Tired of having to give your address and phone number every time you charge a pair of socks? "Consumers who use credit cards and checks are increasingly being asked to provide information beyond what merchants have a right to know. Not only is the practice an invasion of your privacy [...] but it also may increase your exposure to credit fraud. "That is the warning in a report released yesterday by the Massachusetts Public Interest Research Group[1] (MassPIRG) [...] Entitled ``What They Know Can Hurt You,'' the report charges that the check-cashing and credit-card policies of many retail merchants expose consumers to fraud, violate their privacy and tie up their credit." [...] "MassPIRG's survey of [Boston] area stores was launched after a Quincy [MA] resident, Elaine McArdle, became furious at the way she was treated by a Quincy sporting goods store." [She tried to pay $90 by check, they demanded a credit card, wrote the # on the check, then ran it through their machine. She was less than $90 from the limit, so the card was bounced and the store wouldn't take her check. Credit card #s on checks are a big source of fraud. The owner of the store claimied they didn't have to take anybody's check. MassPIRG tried the same experiment at 10 other stores, plus tried using credit cards.] "Six of the stores [...] wrote down additional personal information from charge-card customers. Five of those stores allowed the transaction to continue after the [MassPIRG] researcher declined to provide the information requested. [...] Radio Shack [...] refused to allow the researcher [...] to complete her transaction. "John McKearney, district manager for Radio Shack in Boston, said his stores have a right to reject any credit-card or check transaction. He pointed out that the information is not recorded on credit-card slips, but is entered in an electronic database. He said the data is used to help Radio Shack recover losses from credit-card fraud, as well as for marketing purposes. "But a spokeswoman for MasterCard said yesterday that merchants are ``violating their contract'' with MasterCard if they require a customer's address and phone number as a condition for a credit-card transaction. She added that collecting addresses and phone numbers offers no protection to merchants, and she adviased consumers to report any store's refusal to honor their credit cards to the bank that issued their card. "A spokesman for VISA said: ``Our position is that the merchant cannot refuse to accept the card if the customer won't provide a telephone number or address.'' [7 of the 10 stores MassPIRG went to with checks asked for a major credit card, 4 of those wrote the # on the check.] "MassPIRG supports legislation [in MA] that would penalize businesses that go too far. The legislation would assess fines of $250 ($1000 after the first offense) on businesses that require anything other than a signature on credit-card slips. Four states has passed laws that prohibit recording personal information on credit-card sales drafts." [1] PLUG: I have worked for, and belong to, MassPIRG. They are a very effective, non-partisan, consumer and environmental group. They concentrate on research, lobbying/writing laws, and occasional litigation on behalf of consumers and state residents. I recommend them highly to anyone looking to join a good organization in this domain. There are PIRGs in 22 other states, plus one in DC and a national arm (USPIRG). Check out the one in your state. The PIRGs played a major role in getting the recent Clean Air bill passed, and will be active in the upcoming battles over consumer privacy laws, and the reauthorization of Superfund and RCRA. -- --Alan Wexelblat phone: (508)294-7485 Bull Worldwide Information Systems internet: wex@spdcc.com (for now) What I have on my desk is a 386 copralite.
niccum@cs.umn.edu (Thomas M. Niccum) (12/01/90)
In <WEX.90Nov30115626@dali.pws.bull.com> wex@dali.pws.bull.com (Buckaroo Banzai) writes: >"But a spokeswoman for MasterCard said yesterday that merchants are >``violating their contract'' with MasterCard if they require a customer's >address and phone number as a condition for a credit-card transaction. She >added that collecting addresses and phone numbers offers no protection to >merchants, and she adviased consumers to report any store's refusal to honor >their credit cards to the bank that issued their card. >"A spokesman for VISA said: ``Our position is that the merchant cannot >refuse to accept the card if the customer won't provide a telephone number >or address.'' I have a merchant account (because I have a small business selling software) Visa and MC periodically send be letters reminding me of the above facts - that it is in violation of my contract to require anything other than a valid card and authorization number to complete a transaction. Lets face it, Visa and MC want you to use their cards hassle free! At 16-22% interest, they're making money so fast that they can afford to take some risks with fraud. If the prime goes up to 17% then you might see a different attitude. >-- >--Alan Wexelblat phone: (508)294-7485 >Bull Worldwide Information Systems internet: wex@spdcc.com (for now) >What I have on my desk is a 386 copralite. -Tom -- ============================================================================= | Thomas M. Niccum | How can you be in two places at once, when you're | | niccum@cs.umn.edu | no anywhere at all? - Firesign Theatre | | 612.626.7810 | |
pmartino@csserv1.ic.sunysb.edu (Steve Wechsler) (12/10/90)
In article <2292.275cf398@iccgcc.decnet.ab.com> browns@iccgcc.decnet.ab.com (Stan Brown) writes: >Why _must_ the merchant honor your credit card without getting your >address, phone number, or mother's sorority sister's stuffed dog's pet >name? [ stuff deleted ] >So "just say no" when you're paying with a credit card and the merchant >asks for any personal information. If they claim MC or Visa wants it, >ask to see where it's written in the book they get from the card >company. And report any hassles to Visa or MasterCard. Correct me if I'm wrong, but wasn't a law just passed that said that you were not required to give your phone number to a merchant when making a credit card purchase? I know I've cited it when people at stores ask me to put my phone number on the receipt. -- "Watch?? I'm gonna pray, man! Know any good religions?" -- Zaphod Beeblebrox - Steve Wechsler
sblair@hotwheel.dell.com (Steve Blair) (12/11/90)
California for one(I'm sure) has passed a law making it against
the law to ask for that type of information. Since my SO and I
don't use credit cards, and haven't(successfully) used them for 5+
years, I immediately ask to see their supervisor. I'll gladly show
them my balance, and if really pressed, my bank card.
I explain to them that their refusal to take my funds(whether cash, or
check), will make my boycott(albeit, a personal one) start happening.
It seems that if one uses a load tone of voice with the store personnel
at the time that this type of information is asked, that 9 times out of
10 they're so embarrassed at provoking a customer, that they will
back down...
Steven C. Blair UNIX Division
DELL Computer Austin Texas
sblair@unixsup.dell.com{uunet!dell!unixsup!sblair}
"no matter where you are, you're already there"daven@svc.portal.com (12/11/90)
In article <1990Dec10.152341.27911@sbcs.sunysb.edu> pmartino@csserv1.ic.sunysb.edu (Steve Wechsler) writes: >In article <2292.275cf398@iccgcc.decnet.ab.com> browns@iccgcc.decnet.ab.com (Stan Brown) writes: >>Why _must_ the merchant honor your credit card without getting your >>address, phone number, or mother's sorority sister's stuffed dog's pet >>name? >[ stuff deleted ] >>So "just say no" when you're paying with a credit card and the merchant >>asks for any personal information. If they claim MC or Visa wants it, >>ask to see where it's written in the book they get from the card >>company. And report any hassles to Visa or MasterCard. > >Correct me if I'm wrong, but wasn't a law just passed that said that you >were not required to give your phone number to a merchant when making a >credit card purchase? I know I've cited it when people at stores ask me to >put my phone number on the receipt. In a related issue... Many of the credit card companys are now asking merchants not to place credit card numbers on personal checks. In Washington state it is now illegal to place credit card information on checks. The merchants are allowed to ask to see your credit cards, they just can't record the numbers if you're not making a credit card purchase. -- ------------------------------------------------------------------------------- Dave Newman | daven@svc.portal.com | AppleLink: D0025 Sofware Ventures Corp. | AOL: MicroPhone | CIS: 76004,2161 Berkeley, CA 94705 | WELL: tinman@well.sf.ca.us | (415) 644-3232