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Common credit card mistakes to avoid

2011-02-17

It is not just the new rules of the Card Act that have upset the retailers in the state of California. The Supreme Court of California has banned merchants from asking cardholders for their zip code when using their credit cards for purchases. This ban has been imposed based on the consumer protection laws in its state. This new rule adds to the already imposed laws that have curbed the freedom of the retailers.

In a unanimous decision on Thursday, Justice Carlos Moreno of the Supreme Court, wrote that, the zip code of the customer is an integral part of the physical address, asking again for it, is banned as per California state laws. However, there is an exception when it comes to revealing the zip code. In gas stations, the merchant can ask for the zip code, since they are not being recorded. Other businesses use these for other reasons. Hence all businesses excluding the gas station are banned from getting this code from cardholders.

This move was not received well by the retailers in the state and they felt they got the raw side of the deal. According to the leader of the retailers association in California, merchants ask for zip code in order to prevent fraud and to protect the customers. The retailers felt this is a terrible move by the court, as it does not serve any purpose.