Dear Consumer Ed:

We recently ordered $800 worth of merchandise from an online store that we have purchased from in the past. A few days after placing the order, the company sent me an email stating that in order to complete the transaction, we had to email them photocopies of both front and back of the credit card used and a government-issued ID, and if we didn't they would cancel our order.  I called VISA, and they told me that the only companies allowed to request that additional information are hotels, airlines, car rental companies and cruise lines.  I did not send the company the information they requested, so they refused to send me my order. Can they do that?

Consumer Ed says: 

Many states have laws that dictate what kind of information merchants can and cannot ask for when a consumer pays with a credit card.  However, all merchants are subject to the rules and regulations outlined in their contract with the credit card company.  For example, your card company, VISA, has International Operating Regulations that state merchants cannot require a cardholder to provide any supplementary information as a condition for honoring a VISA Card, subject to some exceptions.  Supplementary cardholder information can include social security numbers, fingerprints, home or business addresses or telephone numbers, driver’s license numbers, photocopies of driver’s licenses, photocopies of the VISA Card, and other credit cards. As you stated, hotels, airlines, car rental companies, and cruise lines do fall within the exception to the rule. 

So, while a merchant may ask a consumer for identification, he generally may not deny a VISA credit card transaction because the consumer refuses to show identification.  Generally, a signed credit card is all you should need to present in order to avoid showing identification.  Be aware that identification may be required for other purposes, such as purchasing alcohol, tobacco products, or certain medications. 

Paying online or by phone can sometimes create an exception for the merchant, and they may ask for some identifying information, such as a zip code.  This varies a bit by credit card company:  MasterCard’s rule for merchants regarding supplemental identification is similar to VISA’s; American Express doesn't ban merchants from requiring customer identification, though it discourages the practice; Discover’s policy allows merchants to request identification if desired.  You should always contact your credit card company and ask about its policy regarding supplemental identification. Often, you will find that many merchants ignore or are unaware of this identification rule.  If you’re shopping in a store rather than online, and you don’t want to show identification, simply sign your card and refuse to provide ID if asked.  If you feel strongly about not showing identification, you may wish to print out a copy of the relevant merchant rule and ask to speak to a store manager. 

In your particular case, you can email the merchant a copy of Visa’s International Operation Regulations.  If the merchant still demands to see your identification, and then refuses you service if you fail to comply, you should contact your credit card company to open an incident report.  This will initiate an investigation, which can result in a warning or even a fine to the business for violating their merchant contract.

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Dear Consumer Ed:

A few years ago, when my ex-husband and I were still married, we filed for bankruptcy.  A few months into it we decided to get a divorce, so we never completed the bankruptcy, and it was dismissed. Will the bankruptcy show up on my credit report, and if so, will it stay on there as long as it would have if we had actually completed the process?

Consumer Ed says: 

Yes, the dismissed bankruptcy will almost certainly show up on your credit report.  The dismissal can stay on your credit report for 7-10 years, depending on the credit bureau and the type of bankruptcy you and your husband filed.

It is a good idea to get a copy of your credit report to ensure that the information it contains is accurate. You can request a free copy of your credit report by going to www.annualcreditreport.com or by calling 877-322-8228.

If you discover errors on your credit report or if the bankruptcy dismissal has been on your report for longer than 7-10 years, contact the credit bureau directly to dispute the errors. There is no cost to do so. You can contact the credit bureaus at:

  
Experian – www.experian.com
Equifax – www.equifax.com
TransUnion -  www.transunion.com

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Dear Consumer Ed:

I ordered an iPad from a store in Columbus.  I was told it was in stock and that I would receive it within 14 days, but I never did.  I requested a refund.  I have been waiting more than 3 weeks for the refund.  The company can’t even tell me if the check has been processed.  Can they charge my debit card prior to shipping an item?

Consumer Ed says:

It is not illegal for merchants to charge for a product before it has shipped. In general, debit card transactions are governed by the Electronic Funds Transfer Act (EFTA), which does not require debit card issuers to wait until a product has shipped prior to authorizing a transaction from your account.  That being said, your debit card provider may have a policy prohibiting the merchant from charging your account before shipment.  For example, Visa requires that merchants ship a product prior to charging any Visa debit card.  Since you used a debit card to pay for the merchandise, contact the card-issuer to find out about company policies. 

However, if your order is not delivered, you are guaranteed a refund under the Federal Trade Commission’s Mail or Telephone Order Merchandise Rule, which requires that your order be shipped within the time stated in company advertising or by phone.  If no specific time is promised, your order must be shipped within 30 days from the merchant’s receiving a "properly completed order" with your name, address and payment by check, money order or authorization to charge an existing credit account.  If the order is not shipped within the promised time, the merchant must notify you of the revised shipping date and give you the option to cancel for a full refund or accept the new shipping date.  Since you paid by debit card (this would also apply to cash, check or money order), your refund must be mailed within seven business days.  For future reference, had you made the purchase with a credit card, the merchant would be required to credit your account within one billing cycle. 

If you are unable to resolve this issue, please contact the Governor’s Office of Consumer Protection or the Federal Trade Commission (FTC).

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