DAR File No. 27201

Alcoholic Beverage Control, Administration

R81-2-9

Accepting Credit Cards as Payment for Liquor

NOTICE OF PROPOSED RULE

DAR File No.: 27201
Filed: 06/01/2004, 12:02
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed rule amendment further clarifies the procedures to be followed by state liquor store employees when a credit card is used for a liquor purchase, and the credit card company returns a message of "call" or "call hold". It also corrects a minor error regarding liquor store equipment.

Summary of the rule or change:

There are two changes in this proposed amendment. First, the word "hypercom" is removed from Subsection R81-2-9(2)(d) because the department no longer uses the hypercom equipment. Second, Subsection R81-2-9(2)(e)(ii) further clarifies the procedures to be followed by liquor store employees when a customer uses a credit card to make a liquor purchase and the credit card company returns a message of "call" or "call hold". The second change is primarily made to ensure the employee's safety when dealing with a potentially difficult situation.

State statutory or constitutional authorization for this rule:

Section 32A-1-107

Anticipated cost or savings to:

the state budget:

None--This proposed amendment only clarifies procedures to be used by liquor store employees when accepting credit cards for purchase of liquor and deletes the name of a piece of equipment no longer used in state liquor stores. These changes will affect no cost or savings to the state budget.

local governments:

None--This proposed amendment involves credit card sales in state liquor stores and will not affect local governments.

other persons:

None--This proposed amendment only clarifies procedures to be used by liquor store employees when accepting credit cards for purchase of liquor and deletes the name of a piece of equipment that is no longer used in liquor stores. It will not produce an aggregate cost or savings to those involved.

Compliance costs for affected persons:

None--Making the proposed amendments to this rule will involve no compliance cost to any affected individual. The amendments only clarifies procedures used by state liquor store employees when accepting credit cards for the purchase of liquor and deletes the name of a piece of equipment no longer used in liquor stores.

Comments by the department head on the fiscal impact the rule may have on businesses:

The changes proposed in this rule amendment will have no fiscal impact on businesses. The change is proposed primarily to provide additional guidelines to state liquor store employees if and when they become involved in a potentially volatile situation as a result of asking a customer to surrender a credit card as instructed by the credit card company.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Sharon Mackay at the above address, by phone at 801-977-6800, by FAX at 801-977-6889, or by Internet E-mail at smackay@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/15/2004

This rule may become effective on:

07/16/2004

Authorized by:

Kenneth F. Wynn, Director

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

R81-2. State Stores.

R81-2-9. Accepting Credit Cards as Payment for Liquor.

(1) Purpose. This rule explains the procedures to be followed by state liquor store employees in accepting credit cards for the purchase of alcoholic beverages.

(2) Application of Rule.

(a) The owner of the credit card must furnish the cashier with their actual credit card. No sale may be based on the customer merely furnishing a credit card number, or another person's credit card, including that of their spouse.

(b) The cashier shall examine the security features on the card such as signature, account number, expiration date, and hologram before accepting the card.

(c) The card must be signed by the card holder.

(d) If for any reason the credit card cannot be scanned, the cashier shall hand-key the credit card number into the [hypercom or ]cash register keyboard. If the transaction is approved, the cashier shall imprint a copy of the credit card, and have the card holder sign it.

(e) After the cashier scans or hand-keys a credit card, the credit card company may approve or reject the transaction. A rejection may indicate that the card has been stolen, the customer's account is over-drawn, the card has expired, or some other problem. The cashier may receive several messages from the credit card company.

(i) If the message is "decline" or "card not accepted", the cashier should return the card to the customer, suggest another form of payment, and suggest that the customer contact the issuer of the card.

(ii) If the message is "call" or "call hold", the store employee should hold the card and either phone the credit card company's voice authorization center for more information, or enter a "code 10" request. The voice authorization center may instruct that the card be confiscated. The card should then be obtained only if it can be done by peaceful means, and if the card holder voluntarily agrees to surrender the card. The "code 10" request will result in the credit card company researching the status of the card and approving the transaction with a "yes" or rejecting the transaction with a "no" prompt. At no time should store employees put themselves at risk by confiscating a credit card against the desires of the cardholder. If the card [is] can be willingly surrendered and confiscated, the store employee should [immediately ]destroy the card by cutting it in half lengthwise shortly after leaving the customer's presence. The card pieces should then be sent to the card owner's bank with a completed ABC Department LQ-55 form having been filled out by a store employee.

(f) Credit card receipts contain confidential information that must be safeguarded. Cashiers should not throw the receipts in the trash. State store managers and their employees should consult their regional manager concerning proper storage and disposal of receipts.

(g) Refunds, or exchanges of products of unequal value that were purchased with a credit card, shall be handled by crediting the customer's credit card account. The cash register must be balanced by doing a return at the register.

(h) Licensee purchases may not be paid by credit card. Licensee purchases may be only in cash or by check.

KEY: alcoholic beverages

2004

Notice of Continuation November 16, 2001

32A-1-107

32A-1-301 to 32A-1-305

ADDITIONAL INFORMATION

PLEASE NOTE:

• Text to be deleted is struck through and surrounded by brackets (e.g., [example]). Text to be added is underlined (e.g., example). Some browsers may not depict some or any of these attributes on the screen or when the document is printed.
• Please see the DISCLAIMER regarding information available from state web pages.

For questions regarding the content or application of this rule, please contact Sharon Mackay at the above address, by phone at 801-977-6800, by FAX at 801-977-6889, or by Internet E-mail at smackay@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.