New credit, gift card laws put onus on businesses

After enjoying a dinner out at a restaurant, if paying by credit card or debit card you will usually review your slip, sign it and take your card along with your copy of the receipt and place them in a safe place. Normally, you will leave the signed receipt on the table (better yet, in its black sleeve) and walk away.

Question: Did you happen to look to see if that receipt printed your entire credit card account number or debit card number on that receipt? For if it is printed on that slip in its entirety, what an opportunity for anyone wishing to steal your identity or fully access your account!

Uncle Furzer gave you a gift card for your birthday to a Washington state store that offers nothing you would ever dream of buying. You may toss that gift card away. No problem, right? Wrong!

There are a couple of changes happening to the use of both types of cards we all carry in our wallets. One change will help keep our information safe while the other removes responsibility on the part of the bearer. First, steps to keep our credit and debit card numbers safe:

Effective July 1, 2004, in Washington (and nationwide on January 1, 2005) merchants must replace all credit card processing machines that print entire credit card numbers on the receipt to those that “XXXX out” or “truncate” all but the last four digits of customers’ account info. Easy enough to figure but the challenge seems to be that all state businesses out there have not yet made the switch, despite the new state law being in effect.

When I am faced with a receipt where all of my account number is printed (even if I am not in Washington state), I find the employee who serviced me and let them know that I am not happy to see all those numbers printed out. Then I stress my desire for them to at least keep that paper safe and accounted for (via shredding if they even shred – which is another Washington state law!) My account info clearly stated on a receipt left on a table is just as negligent these days as leaving my very credit card on the table!

Calls to local law enforcement, TheLocalBBB, and other agencies indicate that there are still a number of fast food establishments printing entire numbers on slips. Bad idea! Consider the possibilities available to someone who picks printed and completely intact slips from the trash, out of your car, from your wallet or any other spot you might leave it. The moral of this story is: Do not hesitate to let merchants know that you are not happy with their “disposal” methods and call us to report it. While we are not the agency to enforce the law, we will be happy to funnel your feedback to ownership.

Back to Uncle Furser and the Gift Card. Again, effective July 1, 2004, any Washington state merchant selling gift cards must honor them until the end of time. Expiration dates are now a thing of the past. Fees that accrue when the card is not used in the first year now violate state law. So, consumers, when you purchase or receive a gift card, you have no responsibility to utilize it in a timely manner. Good for consumers, but a burden for businesses.

Why do I take issue with this new rule? There are a couple of reasons. First, it is simply one more action that relieves personal consumer responsibility and places the burden on business. Why do we continue to pass laws and policies that remove accountability from individuals?

Second, and more importantly, merchants show unused gift certificates, gift cards and donated services as a liability on their balance sheets. Without getting into Accounting 101, this is like adding a new fleet vehicle to the balance sheet as an asset, and never depreciating if off the books. These cards, if unused, will still show as an obligation on the business’ part. And again, it relieves the user of any responsibility. Why a business should have to shoulder all that seems imbalanced to me. Buyers are responsible in all transactions for doing their homework, to not fall for high-pressure sales tactics, and for understanding refunds and exchange policies. So why should they not also be expected to use a gift card or certificate within a reasonable timeframe?

Keep in mind: this new law does not address the problem of companies going out of business before the holder has a chance to use a gift card. If you hold a card or certificate issued by a company for an “indefinite” amount of time, you are at a higher risk as a consumer of a company potentially being no longer open or in bankruptcy. Then your “indefinite” timeframe for use of that card puts you out of luck.

There are normally many creditors ahead of certificate holders and usually nothing ever makes it that far down the creditor list. Just one more reason to use those gift cards quickly.

TheLocalBBB suggests that you look at receipts you receive back when you use a credit or debit card. All but the last four numbers should be truncated. If they are not, bring your concerns to the attention of the merchant, and then call TheLocalBBB at 455-4200 or (800) 356-1007.

Further resources: Complete Gift Certificate Law for WA State at:

http://www.leg.wa.gov/pub/billinfo/2003-04

/House/3025-3049/3036_pl.pdf