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New Law May Have Consumers Reaching For A Photo ID With Their Credit Card

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Better Business Bureau
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Consumers might want to keep their photo IDs handy when they use their credit cards in 2018. That’s because of a new law that allows businesses to request an additional picture ID for all in-person credit and debit purchases.

The law, passed during 2017’s first legislative session by Longview Republican State Sen. Bryan Hughes, was designed to provide Texas businesses more protection against credit card fraud.

Hughes said due to the implementation of card chip technology and certain shifts in liability for fraudulent purchases, merchants may now be “on the hook” for some of those losses.

“If you are a ‘mom and pop’ business or if you’re Walmart, if you are in the retail business and you take credit cards you ought be able to take some steps to protect yourself because otherwise you’re going to be on the hook,” Hughes said.

Hughes said prior to the new law there was no option for Texas businesses to turn down a transaction if a customer could not, or refused, to provide a photo ID on a credit or debit card purchase. That was because of the restrictive terms credit card companies set up in Texas. He says the new law will allow businesses to protect their customers as well as themselves from fraud.   

Ryan Poppe can be reached at rpoppe@tpr.org or on Twitter @RyanPoppe