A Texas law that is set to take effect in January will allow merchants to ask for photo identification with credit and debit card purchases and deny a transaction if the customer does not show an I.D.
Although the law is designed to reduce fraud, it is not a mandate nor does it shift liability.
There are no penalties to merchants who don’t ask for I.D., and contracts with credit card companies often bar merchants from declining a transaction if a customer does not provide a photo I.D.
The law is set to expire in 2023 by which time advances in different fraud prevention technologies, such as chip readers and biometric identification, should improve cardholder protection.
Vantiv has reached out to both Visa and MasterCard for comment and at this time neither network intends to make any rule changes as a result of this law change. Vantiv will be monitoring this closely to see if other states follow Texas’s lead.