>>>That isn't correct.
>>So they have every right to ask for the identification, but can not record any of it. I don't believe any state makes it illegal to just ask for the information.

As a former employee of one of the Big Two, I can say that the state laws and legality issues do not enter into this. Rather, the by-laws of VISA and MasterCard state that no ID to the merchant is necessary, and no requests for same shall be made.

If a merchant is in violation of VISA or MasterCard by-laws, notify your card issuing company, who will notify the credit card people, who will then notify the merchant bank who will notify the merchant.

Merchant policies will often flagrantly violate this rule that's been in effect forever.

That being said, I remember one former colleague who refused to show a photo ID after pumping gas. The attendant called the cops. After lots of hassle, the colleague, entirely within his rights, produced his ID.

The production of an ID is not for 'your protection,' as the merchant may claim. You are already protected. The ID is for the merchant's own protection, so that they think they have someone to track down in case the charge is denied.

In short, it's not really the merchant's business. When the Radio Shack clerks asks me for my address, when the Dick's Sporting Goods clerk asks me for my zip code, I make up the first thing that comes to mind. My little token skirmish in the war for privacy, since it does little good to argue with an employee who is doing what she's told, and I imagine there are a couple dozen ronins in their system by now.