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A BILL TO BE ENTITLED
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AN ACT
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relating to verification of a customer's zip code in a credit card |
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transaction. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 35, Business & Commerce |
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Code, is amended by adding Section 35.64 to read as follows: |
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Sec. 35.64. ZIP CODE VERIFICATION IN CREDIT CARD |
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TRANSACTION. (a) In this section: |
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(1) "Credit card" means a card or device issued under |
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an agreement by which the issuer gives to a cardholder the right to |
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obtain credit from the issuer or another person. |
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(2) "Credit card issuer" means a lender, including a |
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financial institution, or a merchant that receives applications and |
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issues credit cards to individuals. |
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(b) A business may require a customer who purchases a good |
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or service from the business using a credit card to provide the |
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customer's zip code to verify the customer's identity as provided by |
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Subsection (c). |
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(c) A business that obtains a customer's zip code under |
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Subsection (b) may electronically verify with the credit card |
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issuer that the zip code matches any zip code that the credit card |
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issuer has on file for the credit card. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |