The Privacy Rights Clearing House in San Diego puts out some excellent information on these matters.

(below is some of the info found at http://www.privacyrights.org/fs/fs15-mt.htm)

Paying by Credit Card: California State Laws

What personal information can’t a merchant collect when a consumer pays with a credit card?

* Merchants cannot request or require that the consumer write any personal information, including address and telephone number, on any form associated with the credit card transaction when the consumer uses a credit card to pay for goods or services.
* In addition, the merchant cannot ask the consumer to provide personal information that the merchant then records.
* Merchants cannot use forms with pre-printed spaces for personal information.

Are there any exceptions?

Yes. A merchant can collect personal information when:

* The credit card is used as a deposit.
* The credit card is used for a cash advance.
* The personal information is needed for something incidental but related to the use of the credit card. An example would be the address to which the purchased product is to be shipped.
* The merchant is required to collect information under a federal law or regulation.

California law does not prohibit a merchant from requiring a consumer who pays for goods or services by credit card to show identification such as a California driver’s license or California ID. If these are not available, another form of photo identification can be required to be shown. But merchants cannot write or record any information from these documents. As we explain in the next section, the major credit card company rules provide that merchants cannot make showing identification a condition of credit card acceptance.

Merchants can record the cardholder’s driver’s license number or identification card number on any form associated with the transaction if the cardholder pays with a credit card but does not provide the credit card. An example is if you are at a department store and forget your credit card but want to charge something to your account.

2b. Paying by Credit Card: MasterCard and Visa Rules

Can merchants accepting MasterCard or Visa require customers to show a driver’s license or other identification as a condition of credit card acceptance?

While merchants may ask a customer for identification, in most situations, a merchant may not condition acceptance of a Visa or MasterCard credit card upon the customer presenting identification. In other words, you can refuse to provide identification, and the merchant still must accept your credit card. Many merchants are unaware of this rule or simply choose to ignore it.

Be aware that identification may be required for purposes other than the credit card transaction, for example, when purchasing alcohol, tobacco products, or certain medications. Identification may also be required for unusual transactions flagged during the authorization process.

Some consumers feel that asking for ID helps protect them from identity theft. But others want to protect their privacy and personal security by not revealing their address, birthdate, and other information contained on their driver’s license to a stranger. If you want merchants to ask for your ID, sign your card and write “Ask for ID” below your signature. Be aware, however, that merchants are not bound to honor that instruction.If you do not want to show ID, simply sign your card and refuse to provide ID if asked.

The MasterCard Rules provide as follows:

5.8.4 Additional Cardholder Identification

A Merchant must not refuse to complete a Transaction solely because a Cardholder who has complied with the conditions for presentment of a Card at the POI refuses to provide additional identification information, except as specifically permitted or required by the Standards. A Merchant may require additional identification from the Cardholder if the information is required to complete the Transaction, such as for shipping purposes. A Merchant in a country or region that supports use of the MasterCard Address Verification Service (AVS) may require the Cardholder’s ZIP or postal code to complete a Cardholder-Activated Terminal (CAT) Transaction, or the Cardholder’s address and ZIP or postal code to complete a mail order, phone order, or e-commerce Transaction. http://www.mastercard.com/us/merchan...ual_public.pdf

MasterCard has an online form for reporting merchant violations of this rule. Go to http://www.mastercard.com/us/persona...iolations.html and check the box: “The merchant/retailer required identification.”

The Visa International Operating Regulations provide as follows:

Supplemental Identification - U.S. Region

A U.S. Acquirer must not, as a regular practice, require a Merchant, and a Merchant must not require a Cardholder, to provide any supplementary Cardholder information as a condition for honoring a Visa Card or Visa Electron Card, unless it is required or permitted elsewhere in the U.S. Regional Operating Regulations. Such supplementary Cardholder information includes, but is not limited to:

• Social Security Number (or any part thereof)

• Fingerprint

• Home or business address or telephone number

• Driver's license number

• Photocopy of a driver's license

• Photocopy of the Visa Card or Visa Electron Card

• Other credit cards

http://usa.visa.com/download/merchan...tions-main.pdf (pg. 468)

Unfortunately, the MasterCard Rules and Visa Operating Regulations are often ignored by retailers. If you feel strongly about not showing identification as a condition of using your Visa or MasterCard credit card, you may wish to print out a copy of the relevant merchant rule (from the pdf links cited above) and ask to speak to a store manager.