Can a merchant ask for additional id when a credit card is used?

Answer 1

Answer

NO . Merchants who accept credit cards CANNOT set their own requirements for assuring that a person has authorization to use the card being submitted.

Any Merchant in the US CANNOT ask for an I.D

he MasterCard Merchant Rules Manual provides as follows:

9.11.2 Cardholder Identification
A merchant must not refuse to complete a MasterCard card transaction solely
because a cardholder who has complied with the conditions for presentment
of a card at the POI [point of interaction] refuses to provide additional identification information, except as specifically permitted or required by the Standards. A merchant may require additional identification from the cardholder if the information is required to complete the transaction, such as for shipping purposes. A merchant in a country or region that supports use of the MasterCard Address Verification Service (AVS) may require the cardholder's ZIP or postal code to complete a cardholder-activated terminal (CAT) transaction, or the cardholder's address and ZIP or postal code to complete a mail order, phone order, or e-commerce transaction.
(http://www.mastercard.com/us/wce/PDF/MERC-Entire_Manual.pdf)

The Rules for Visa Merchants provides:

When should you ask a cardholder for an official government ID? Although Visa
rules do not preclude merchants from asking for cardholder ID, merchants
cannot make an ID a condition of acceptance. Therefore, merchants cannot
refuse to complete a purchase transaction because a cardholder refuses to
provide ID. Visa believes merchants should not ask for ID as part of their
regular card acceptance procedures. Laws in several states also make it illegal
for merchants to write a cardholder's personal information, such as an address or
phone number, on a sales receipt.

(http://usa.visa.com/download/merchants/rules_for_visa_merchants.pdf , Rules for Visa Merchants, page 29).

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Visa and MasterCard Rules and Regulations

Here's what Visa says about requiring ID:

"Although Visa rules do not preclude merchants from asking for cardholder ID, merchants cannont make an ID a condition of acceptance. Therefore, merchants cannot refuse to complete a purchase transaction because a cardholder refuses to provide ID. Visa believes merchants should not ask for ID as part of their regular card acceptance procedures."

From page 31 of their Card Acceptance Guide.

Here's what MasterCard says about requiring ID:

"A Merchant must not refuse to complete a Transaction soley because a Cardholder who has complied with conditions for presentment of a Card at the POI refuses to provide addititional information, exept as specifically permitted or required by the Standards. A Merchant may require additional identification from the Cardholder if the information is required to complete the Transaction, such as for shipping purposes."

From page 87, Section 5.6.3 of the MasterCard Rules.

The Visa and MasterCard rules and regulations would allow for a retail store to ask for ID if having an account with the store is required to make a purchase, and an ID is required to open an account.

The Visa and MasterCard rules and regulations would allow for a retail store to ask for ID if the card is not signed. In fact, an unsigned card can not be accepted, and the clerk should have you sign the card after providing ID. As a result, people who write "See ID" on their signature panels would really only get that benefit the first time they use the card.

Other common merchant violations and reporting them

In addition to not being able to ask for ID, merchants can not add surcharges for credit card payments, and can not have minimum amount requirements for credit card payments. However, merchants can give a discount to cash customers.

If you encounter a merchant violation, you can report them at the following telephone numbers:

VISA: 800-VISA-911
MasterCard: 800-300-3069