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Q: Populating a database using driver's license ( Answered,   1 Comment )
Question  
Subject: Populating a database using driver's license
Category: Business and Money
Asked by: donros-ga
List Price: $200.00
Posted: 08 Nov 2006 10:11 PST
Expires: 08 Dec 2006 10:11 PST
Question ID: 781085
What states allow a retailer to electroncially read the driver's
license and populate a database with information from drivers license?
Answer  
Subject: Re: Populating a database using driver's license
Answered By: hummer-ga on 08 Nov 2006 17:02 PST
 
Hi donros,

Well, you've really got three issues here but the first one covers it.
One is the federal 1994 privacy law, "Driver's Privacy Protection
Act", second are state privacy laws, and lastly the merchant credit
card agreements that all merchants sign.

1) Driver's Privacy Protection Act

"What states allow a retailer to electroncially read the driver's
license and populate a database with information from drivers license?"

Federal law: none

This act is meant to protect personal information and states that, 
(3) "For use in the normal course of business by a legitimate business
or its agents, employees, or contractors, but only-
(A) to verify the accuracy of personal information submitted by the
individual to the business or its agents, employees, or contractors"

In other words, a driver's license may be used to verify
identification but that's all, certainly not for the collection and
storage of information which may be found on the card, some of which
may be highly sensitive.

Is it Legal?:
"Driver's license swiping is a relatively new phenomenon and has yet
to be challenged. There is a privacy law in the U.S. called the
Driver's Privacy Protection Act of 1994 (DPPA) that could possibly be
used to end swiping, depending on how you interpret it.
DPPA requires that all states protect the privacy of personal
information contained in an individual's motor vehicle record..."
http://www.we-swipe.us/bar/legal.html

The Drivers Privacy Protection Act (DPPA) and the Privacy of Your
State Motor Vehicle Record
Permissible Uses of a Driver's Motor Vehicle Record
The DPPA limits the use of a driver's motor vehicle record to certain
purposes. These purposes are defined in 18 U.S.C.  2721:
 * Legitimate government agency functions.
 * Use in matters of motor vehicle safety, theft, emissions, product recalls.
 * Motor vehicle market research and surveys.
 * "Legitimate" business needs in transactions initiated by the
individual to verify accuracy of personal information.
 * Use in connection with a civil, criminal, administrative or arbitral proceeding.
 * Research activities and statistical reports, so long as personal
information is not disclosed or used to contact individuals.
 * Insurance activities.
 * Notice for towed or impounded vehicles.
 * Use by licensed investigators or security service.
 * Use by private toll transportation facilities.
 * In response to requests for individual records if the State has
obtained express consent from the individual.
 * For bulk marketing distribution if State has obtained express
consent from the individual.
 * Use by any requestor where the reqestor can show written consent of
the individual.
 * For any other legitimate State use if it relates to motor vehicle
or public safety.
http://www.epic.org/privacy/drivers/

TITLE 18 > PART I > CHAPTER 123 >  2721	
 2721. Prohibition on release and use of certain personal information
from State motor vehicle records
(b) Permissible Uses.
(3) For use in the normal course of business by a legitimate business
or its agents, employees, or contractors, but only?
(A) to verify the accuracy of personal information submitted by the
individual to the business or its agents, employees, or contractors;
and
(B) if such information as so submitted is not correct or is no longer
correct, to obtain the correct information, but only for the purposes
of preventing fraud by, pursuing legal remedies against, or recovering
on a debt or security interest against, the individual.
http://www4.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00002721----000-.html

TITLE 18 > PART I > CHAPTER 123 >  2722
 2722. Additional unlawful acts
(a) Procurement for Unlawful Purpose.? It shall be unlawful for any
person knowingly to obtain or disclose personal information, from a
motor vehicle record, for any use not permitted under section 2721 (b)
of this title.
http://www4.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00002722----000-.html

TITLE 18 > PART I > CHAPTER 123 >  2725	
 2725. Definitions
(1) ?motor vehicle record? means any record that pertains to a motor
vehicle operator?s permit, motor vehicle title, motor vehicle
registration, or identification card issued by a department of motor
vehicles;
(2) ?person? means an individual, organization or entity, but does not
include a State or agency thereof;
(3) ?personal information? means information that identifies an
individual, including an individual?s photograph, social security
number, driver identification number, name, address (but not the
5-digit zip code), telephone number, and medical or disability
information, but does not include information on vehicular accidents,
driving violations, and driver?s status.[1]
(4) ?highly restricted personal information? means an individual?s
photograph or image, social security number, medical or disability
information; and
(5) ?express consent? means consent in writing, including consent
conveyed electronically that bears an electronic signature as defined
in section 106(5) of Public Law 106?229.
http://www4.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00002725----000-.html

2) State Laws 

"What states allow a retailer to electroncially read the driver's
license and populate a database with information from drivers license?"

Generally, the states that have laws are more or less the same as the
federal law, in that driver's licenses may be used to verify
identification. Further, address or telphone numbers can only be
recorded when necessary for shipping, etc.

STATES THAT PROHIBIT RECORDING OF PERSONAL INFORMATION
The following states prohibit merchants from recording certain
personal information in connection with credit card transactions:
        * California
        * Delaware
        * Georgia
        * Maryland
        * Massachusetts
        * Minnesota
        * Nevada
        * New Jersey
        * New York
        * Pennsylvania
        * Washington, DC
        * Wisconsin
http://www.gofso.com/Premium/LE/06_le_ic/fg/fg-merchants.html#MORE:A

Must I give my phone number when I use a credit card?
"Several states, including California, Delaware, Georgia, Kansas,
Massachusetts, Minnesota, Nevada, New Jersey, New York, Oregon,
Pennsylvania, Rhode Island and Wisconsin, bar merchants from recording
personal information when you use a credit card. Furthermore,
merchants agreements with Visa and MasterCard prohibit them from
requiring a customer to furnish a phone number when paying with Visa
or MasterCard. Nevertheless, many still ask."
http://www.courttv.com/archive/legalcafe/work/credit_cards/credit_background.html

Merchant Laws
"The following are state laws regarding what merchants can and cannot
ask for when you pay by check or credit card. If your state is not
listed, then to the best of our knowledge it does not have applicable
laws..."
http://www.privacyrights.org/fs/fs15plus.htm


CALIFORNIA
* (d) This section does not prohibit any person, firm, partnership,
association, or corporation from requiring the cardholder, as a
condition to accepting the credit card as payment in full or in part
for goods or services, to provide reasonable forms of positive
identification, which may include a driver's license or a California
state identification card, or where one of these is not available,
another form of photo identification, provided that none of the
information contained thereon is written or recorded on the credit
card transaction form or otherwise.If the cardholder pays for the
transaction with a credit card number and does not make the credit
card available upon request to verify the number, the cardholder's
driver's license number or identification card number may be recorded
on the credit card transaction form or otherwise.
DELAWARE
* 11 Del. C.  914. Use of consumer identification information 
    (a) Except as provided in subsection (b) of this section, as a
condition of accepting a credit card as payment for consumer credit,
goods, realty, or services, a person may not write down or request to
be written down the address and/or telephone number of the credit card
holder on the credit card transaction form.
    (b) A person may record the address or telephone number of a
credit card holder if the information is necessary for:
    (1) The shipping, delivery or installation of consumer goods; or    
    (2) Special orders of consumer goods or services. 
GEORGIA
* (f) This Code section shall not prohibit a merchant from:
 (3) Recording on the check or elsewhere the type of credit or charge
card displayed for the purposes of paragraph (2) of this subsection
and the credit or charge card expiration date; or (4) Recording the
address or telephone number of a credit cardholder if the information
is necessary for the shipping, delivery, or installation of consumer
goods or for special orders of consumer goods or services.
MARYLAND
* Md. Commerical Law Code Ann.  13-317. Use of consumer
identification information in connection with credit card payments
  (a) Prohibition. -- Except as provided in subsection (b) of this
section, as a condition of accepting a credit card or device as
payment for consumer credit, goods, realty, or services, a person may
not record the address or telephone number of the credit card holder.
  (b) Exceptions. -- A person may record the address or telephone
number of a credit card holder if: (1) The information is necessary
for:
  (i) The shipping, delivery, or installation of consumer goods; or      
  (ii) Special orders of consumer goods or services;    
    (2) Authorization from the credit card issuer as to the
availability of credit is not required by the issuer to complete the
credit card transaction; or
    (3) The person processes credit card transactions by mailing
transaction forms to a designated bankcard center for settlement.
MASSACHUSETTS
* (b) No person, firm, partnership, corporation or other business
entity accepting a check in any business or commercial transaction as
payment in full or in part for goods or services shall do any of the
following:
    (1) Require, as a condition of acceptance of such check, that the
person presenting such check provide a credit card number, or any
personal identification information other than a name, address, motor
vehicle operator license number or state identification card number of
such person and telephone number, all of which may be recorded;
provided, however, that the person, firm, partnership, corporation or
other business entity accepting such check may verify the signature,
name, and expiration date on a credit card; provided further, that in
complying with a request to provide a telephone number, the person
paying with a check may provide either a home telephone number or a
telephone number where such person may be called during daytime hours.
MICHIGAN
* (3) The following is prima facie evidence of the identity of the
drawer of a check:
   (a) The following drawer information if obtained from the drawer
and recorded on the check:
     (i)  Name.(ii)  Address.(iii)  Home or work telephone number, if any.
     (iv)  Driver license number, state identification card number, or
military identification card number.
MINNEASOTA
* Subd. 2. Exception. A person may record the address or telephone
number of a credit cardholder if the information is necessary for the
shipping, delivery, or installation of consumer goods, or special
orders of consumer goods or services.
NEVADA
*  (a) Prohibit the recordation of personal identifying information
required for a special purpose incidental to the use of the credit
card, such    as the delivery, shipment, servicing or installation of
the purchased merchandise.
NEW JERSEY
* N.J. Stat.  56:11-17. Personal identification information not
required for credit card transaction
    No person which accepts a credit card for a consumer transaction
shall require the credit card holder, as a condition of using a credit
card in completing the consumer transaction, to provide for
recordation on the credit card transaction form or any other form, any
personal identification information that is not required by the issuer
to complete the credit card transaction, including, but not limited
to, the credit card holder's address or telephone number, or both;
provided, however, that the credit card holder's telephone number may
be required on a credit card transaction form if the credit card
transaction is one for which the credit card issuer does not require
authorization.
NEW YORK
* 3. No person, firm, partnership or corporation which accepts credit
or debit cards for the transaction of business shall require the
credit or debit card holder to write on the credit or debit card
transaction form, nor shall it write or cause to be written on such
form, any personal identification information, including but not
limited to the credit or debit card holder's address or telephone
number, that is not required by the credit or debit card issuer to
complete the credit or debit card transaction; provided, however, that
the credit or debit card holder's address and telephone number may be
required on such form where (i) such information is necessary for
shipping, delivery or installation of purchased merchandise or for
special orders; (ii) authorization from the credit or debit card
issuer as to the availability of credit is not required by the issuer
to complete the credit or debit card transaction; or (iii) the person,
firm, partnership or corporation processes credit or debit card
transactions by mailing transaction forms to a designated bankcard
center for settlement.
OREGON
* ORS  646.892. Requiring credit card number as condition for
accepting check or share draft prohibited; exceptions.
  (1) A person shall not require as a condition of acceptance of a
check or share draft, or as a means of identification, that the person
presenting the check or share draft provide a credit card number or
expiration date, or both, unless the credit is issued by the person
requiring the information.
  (2) Subsection (1) of this section shall not prohibit a person from:
646.894 Verification of identity in credit or debit card transactions.
(1) A merchant that accepts a credit card or debit card for a
transaction may require that the credit card or debit card holder
provide personal information, other than the personal information that
appears on the face of the credit card or debit card, for the purposes
of verification of the card holder's identity. The merchant may not
write the information on the credit card or debit carD transaction
form.
(2) This section may not be construed to prevent a merchant from
requesting and keeping in written form information necessary for
shipping, delivery or installation of purchased goods or services, or
for warranty when the information is provided voluntarily by a credit
card or debit card holder.
 (e) Requesting and recording the name, address, motor vehicle
operator license number or state identification card number and
telephone number of a person offering payment by check; or
PENNSYLVANIA
* 69 P.S.  2602. Requirement of information prohibited
    (a) GENERAL RULE.--NO PERSON WHO ACCEPTS CREDIT CARDS FOR THE
TRANSACTION OF BUSINESS SHALL REQUIRE THE CREDIT CARDHOLDER TO WRITE
ON THE CREDIT CARD TRANSACTION FORM, NOR SHALL THE PERSON WRITE OR
CAUSE TO BE WRITTEN ON THE FORM, ANY PERSONAL IDENTIFICATION
INFORMATION, INCLUDING, BUT NOT LIMITED TO, THE CREDIT CARDHOLDER'S
ADDRESS OR TELEPHONE NUMBER, THAT IS NOT REQUIRED BY THE CREDIT CARD
ISSUER TO COMPLETE THE CREDIT CARD TRANSACTION, PROVIDED, HOWEVER,
THAT THE CREDIT CARDHOLDER'S ADDRESS AND TELEPHONE NUMBER MAY BE
REQUIRED ON THE FORM WHERE:
      (1) the information is necessary for shipping, delivery or
installation of purchased merchandise, warranties or service
maintenance agreements, or for special orders;
RHODE ISLAND
* R.I. Gen. Laws  6-13-16. Prohibition against recording personal
information in credit card transactions
  (a) No person, firm, partnership or corporation which accepts credit
cards for the transaction of business shall require the credit card
holder to write or cause to be written on a transaction form any
personal identification information, including, but not limited to,
the credit card holder's address or telephone number, that is not
required by the credit card issuer to complete the credit card
transactions.
  (b) The credit card holder's address and telephone number may be
required on a transaction form where:
  (1) this information is necessary for shipping, delivery,
installation of purchased merchandise, consumer rental transactions,
warranty, or for special orders;
WASHINGTON, DC
* D.C. Code  47-3153. Use of consumer identification information in
connection with credit card payments
  (a) Except as provided in subsection (b) of this section, no person
shall, as a condition of accepting a credit card as payment for a sale
of goods or services, request or record the address or telephone
number of a credit card holder on the credit card transaction form.
  (b) A person may record the address or telephone number of a credit
card holder if the information is necessary for the shipment,
delivery, or installation of consumer goods, or special orders of
consumer goods or services.
WISCONSIN
* Wis. Stat.  423.401. Credit card identification information
  (1) LIMITATION. Except as provided in sub. (2), a merchant may not
record a customers address, telephone number or any other
identification information as a condition for accepting a credit card
as payment for a consumer credit transaction.
   (2) EXCEPTIONS. A merchant may record a customers address or
telephone number if any of the following conditions exists:
      (a) The credit card issuer does not require the merchant to
obtain from the issuer prior authorization as to the availability of
credit in order to complete the credit card transaction.
      (b) The merchant requires the information for shipping,
delivery, service orders or installation purposes or to notify the
customer of a special order.
			 
California
AB 224 (Kehoe-D) Identity verification
Prohibits a retailer from electronically reading an identity card,
including a driver's license or state identity card, except under
specified circumstances, and then only as necessary for a particular
transaction or purpose. Prohibits a retailer from storing information
obtained from electronically reading and identity card, except under
specified circumstances, and requires that the information be
destroyed when it is no longer needed for the purpose for which it was
obtained. Prohibits the sharing of information that a retailer
properly obtains from electronically reading an identity card, except
under specified circumstances and prohibits completely the sale of
this information.
(In Assembly Business and Professions Committee)
http://www.sen.ca.gov/sfa/2003/_03_DL03.HTM#20AB%2002241564

3) Credit Cards

Regarding credit card merchant account agreements, merchants are not
permitted to ask for additional information beyond the card number and
signature in order to process the card.

Using Credit and Charge Cards
"Several states, including California, Delaware, Georgia, Kansas,
Massachusetts, Minnesota, Nevada, New Jersey, New York, Oregon,
Pennsylvania, Rhode Island and Wisconsin, bar merchants from recording
personal information when you use a credit card. Furthermore,
merchants agreements with Visa and MasterCard prohibit them from
requiring a customer to furnish a phone number when paying with Visa
or MasterCard. Nevertheless, many still ask."
http://www.courttv.com/legalcafe/work/credit_cards/credit_background.html

Merchant Credit Card Abuses
"Merchants may ask you to provide a phone number, home address, or
other personal information on credit card sales slips. This practice
not only violates your privacy, but American Express, MasterCard, and
Visa prohibit requiring it as a condition of sale."
http://www.gofso.com/Premium/LE/06_le_ic/fg/fg-merchants.html

Bruce Schneier's Criticisms of the Real I.D. Act:
The most controversial aspect of the Real ID act seems to be the list
of items that a driver's license must have:
 (1) The person's full legal name.
 (2) The person's date of birth.
 (3) The person's gender.
 (4) The person's driver's license or identification card number.
 (5) A digital photograph of the person.
 (6) The person's address of principle residence.
 (7) The person's signature.
 (8) Physical security features designed to prevent tampering,
counterfeiting, or duplication of the document for fraudulent
purposes.
 (9) A common machine-readable technology, with defined minimum data elements.
http://volokh.com/posts/1115739442.shtml 


I was glad to work on this for you. If you have any questions, please
post a clarification request and wait for me to respond before
closing/rating my answer.

Thank you,
hummer

Some Google search terms used:
states legal swipe driver's license retailers electronically database
identity verification law laws
Comments  
Subject: Re: Populating a database using driver's license
From: guntherg-ga on 09 Nov 2006 13:12 PST
 
There's not much information on driver licences anyway. Check this site:
http://turbulence.org/Works/swipe/main.html
They have a software that reads two-dimensional barcode from the back
of the driver license, and decrypts it.
Along with that, which is their main interest, they provide a table
that summarizes which state publish private data on driver licenses,
and what specificly.
It's amazing how much of our private information some police states
desire to propagate to anyone. On the other hand, some states like
California, disclose almost nothing.

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