New Law Will Allow Texas Merchants to Reject Debit Customers Who Don’t Show ID

Aug 8, 2017

Credit Mike Mozart / Flickr Creative Commons

A new Texas law will allow shop clerks to decline a purchase if the shopper doesn’t show a valid ID when paying with a credit or debit card.

As The Texas Tribune reports, the idea behind the law is to reduce credit card fraud.

However, some merchants have contracts with credit card companies that disallow them from rejecting a sale based on improper identification. In those cases, the contract will supersede the law.

Some observers were surprised to learn that merchants weren’t already allowed to decline a sale if the shopper doesn’t have proper ID. Some critics are concerned that the law will penalize Texans who don’t have ID but rely on certain debit cards provided by government assistance programs.

Losses from credit and debit card fraud have been a major concern for banks statewide for years. The law will take effect on Jan. 1.