Texas House passes stored-value card ID protection measure

May 6, 2015

FARMERS BRANCH, Texas (5/6/15)--The Texas House of Representatives passed a bill Tuesday that would require photo identification for purchasing or adding funds to a stored-value card.

House Bill 3522 would require an ID from individuals using a credit or debit card to purchase or add funds to a stored-value card at a merchant that has more than 50 locations, the Cornerstone Credit Union League’s newsletter reported (Leaguer May 5).

Merchants would ask for a photo ID when the purchaser chooses to pay for the transaction using a debit or credit card and does not provide a ZIP code or PIN to authenticate the transaction.

The merchant would be responsible for any losses to the cardholder and card issuer for not obtaining proper identification when the transaction occurs.

A common result of data security breaches is the selling of stolen credit and debit card information. Thieves then use the compromised data to purchase stored-valued cards, oftentimes at stores that have a large selection of retailer cards to choose from.

Using photo IDs at the time of purchase would create an additional layer of protection against thieves, the Cornerstone league noted.

The bill passed by a vote of 111-32.