N.Y. General Business Law § 520-a: Certain credit and debit card transaction forms required

§ 520-a. Certain credit and debit card transaction forms required. 1.

Any person, firm, partnership, association or corporation which issues

forms used for credit or debit card transactions between the credit card

or debit card holder and seller, shall only issue such credit or debit

card forms, except for such forms utilized for a special purpose

incidental but related to the actual purchase and sale agreement

including but not limited to shipping, delivery or installment of

purchased merchandise or special orders, which:

a. are carbonless; or

b. after the transaction is complete, do not render a separate piece

of paper, carbon or otherwise, which readily identifies the cardholder

by name or number, other than those necessary for use by the seller,

credit or debit card holder and issuer to complete the credit or debit

card transaction.

2. Any person, firm, partnership, association or corporation which

accepts credit or debit cards used for credit or debit card transactions

between the credit card or debit card holder and seller, shall only use

credit or debit card forms except for such forms utilized for a special

purpose incidental but related to the actual purchase and sale agreement

including but not limited to shipping, delivery or installment of

purchased merchandise or special orders, which:

a. are carbonless; or

b. after the transaction is complete, do not render a separate piece

of paper, carbon or otherwise, which readily identifies the cardholder

by name or number, other than those necessary for use by the seller,

credit card or debit card holder and issuer to complete the credit or

debit card transaction. No person, firm, partnership, association or

corporation which accepts credit or debit cards for the transaction of

business shall be deemed to have violated the provisions of this

subdivision, if such person, firm, partnership, association or

corporation shows by a preponderance of evidence that the violation was

not intentional and resulted from bona fide error made notwithstanding

the maintenance of procedures reasonably adopted to avoid any such

error.

3. No person, firm, partnership or corporation which accepts credit or

debit cards for the transaction of business shall require the credit or

debit card holder to write on the credit or debit card transaction form,

nor shall it write or cause to be written on such form or on any

attachment thereto, any personal identification information, including

but not limited to the credit or debit card holder's address or

telephone number, that is not required by the credit or debit card

issuer to complete the credit or debit card transaction; provided,

however, that the credit or debit card holder's address and telephone

number may be required on such form or attachment thereto where (i) such

information is necessary for shipping, delivery or installation of

purchased merchandise or for special orders; or (ii) the person, firm,

partnership or corporation processes credit or debit card transactions

by mailing transaction forms to a designated bankcard center for

settlement.

4. No person, firm, partnership, association or corporation which

accepts a personal check, gift certificate, traveler's check or money

order in payment for goods or services used or bought for use primarily

for personal, family or household purposes, and which as a condition of

such acceptance requires that the check drawer or redeemer of the gift

certificate, traveler's check or money order provide a credit or charge

card, shall record on such check, gift certificate, traveler's check or

money order or elsewhere, the card account number. Nothing in this

subdivision shall be construed to prohibit any person, firm,

partnership, association or corporation, as a condition for the

acceptance of a check, gift certificate, traveler's check or money order

in payment for goods or services from: (i) requesting a purchaser to

display a credit or charge card as a means of identification, or as an

indication of credit worthiness or financial responsibility; or (ii)

recording on the check, gift certificate, traveler's check or money

order the type of credit or charge card so displayed and/or the credit

or charge card expiration date; provided, further, that nothing in this

subdivision shall require any business entity to accept a check, gift

certificate, traveler's check or money order in payment for goods or

services whether or not a credit or charge card is displayed.

4-a. a. No person, firm, partnership, association, limited liability

company, corporation, or other entity that accepts charge, credit, or

debit cards for the transaction of business shall print the expiration

date of the charge, credit, or debit card nor shall any person, firm,

corporation, partnership, association, limited liability company, or

other entity print more than the last five digits of the charge, credit,

or debit card account number upon any receipt provided to the card

holder.

b. This subdivision shall apply only to receipts that are

electronically printed and shall not apply to transactions in which the

sole means of recording the person's charge, credit, or debit card

number is by handwriting or by an imprint or copy of the credit card.

c. The provisions of this subdivision shall apply to all cash

registers or other machines or devices, which electronically print

receipts for charge, credit, or debit card transactions, that are placed

in service on or after January first, two thousand four.

d. For all cash registers or other machines or devices that

electronically print receipts for charge, credit, or debit card

transactions in service prior to January first, two thousand four, the

provisions of this subdivision shall not apply until January first, two

thousand seven.

e. A person, firm, corporation, partnership, association, limited

liability company, or other entity who violates this subdivision shall

be given notice with specificity of such violation and be granted two

weeks to correct such violation in its entirety. If such violation is

not corrected in its entirety at the end of such two-week period, the

violation shall be punishable by a civil penalty of five hundred

dollars, and the violator shall be granted an additional one week in

which to correct such violation in its entirety. If such violation is

not corrected in its entirety at the end of such one-week period, such

violation shall be punishable by a civil penalty of one thousand dollars

per week until such violation is corrected in its entirety. The

aggregate penalties imposed on an individual person, firm, corporation,

partnership, association, limited liability company, or other entity for

violations of this subdivision shall not exceed four thousand five

hundred dollars for violations occurring on the same premises.

5. A violation of subdivision one of this section shall be punishable

by a civil fine not to exceed one thousand dollars. A violation of

subdivision two, three, or four of this section, if such violation

constitutes the first such offense by such person shall be punishable by

a civil fine not to exceed two hundred fifty dollars. The second offense

and any offense committed thereafter shall be punishable by a civil fine

not to exceed one thousand dollars.

6. Whenever there shall be a violation of this section an application

may be made by the attorney general in the name of the people of the

state of New York to a court or justice having jurisdiction by a special

proceeding to issue an injunction, and upon notice to the defendant of

not less than five days, to enjoin and restrain the continuance of such

violation; and if it shall appear to the satisfaction of the court or

justice that the defendant has, in fact, violated this section, an

injunction may be issued by the court or justice, enjoining and

restraining any further violations, without requiring proof that any

person has, in fact, been injured or damaged thereby. In any such

proceeding, the court may make allowances to the attorney general as

provided in paragraph six of subdivision (a) of section eighty-three

hundred three of the civil practice law and rules, and direct

restitution. In connection with any such proposed application the

attorney general is authorized to take proof and make a determination of

the relevant facts and to issue subpoenas in accordance with the civil

practice law and rules.