No. 27035 (Amendment): R81-2-9. Accepting Credit Cards as Payment for Liquor

DAR File No.: 27035
Filed: 04/01/2004, 12:33
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Utah Administrative Rulemaking Act was amended in 2003 to provide that an agency's written statements that restrict the legal rights of a public class of persons or another agency must be in rule and go through the rulemaking process. Credit cards have been accepted as legal tender in state liquor stores for several years and have been regulated by internal department policy. The relocating of these regulations into administrative rule is proposed to conform with the Rulemaking Act. (DAR NOTE: The Utah Administrative Rulemaking Act was amended by S.B. 30 (2003), which is found at UT L 2003 Ch 197, and was effective May 5, 2003.)

 

Summary of the rule or change:

This proposed rule amendment establishes by administrative rule the guidelines used by sales clerks in state liquor stores when accepting credit cards for the purchase of liquor.

 

State statutory or constitutional authorization for this rule:

Section 32A-1-107

 

Anticipated cost or savings to:

the state budget:

The Department of Alcoholic Beverage Control (DABC) has accepted credit cards as legal tender for the purchase of liquor for several years. When this practice was first established, there was a one-time cost for credit card reading equipment of approximately $5,500. Since then there have been nominal costs for maintenance of the equipment. Relocating the guidelines for accepting credit cards in administrative rule has not, in itself, affected the state budget.

 

local governments:

None--Liquor sales in the state of Utah are handled by state government. The acceptance of credit cards in state liquor stores does not fiscally affect local governments.

 

other persons:

None--Liquor sales in the state of Utah are handled by state government. The acceptance of credit cards in state liquor stores does not fiscally affect other persons.

 

Compliance costs for affected persons:

None--The affected persons in this case include individuals and businesses that purchase liquor. There is no compliance cost to affected persons in connection with their use of credit cards.

 

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

The concept of allowing businesses (excluding licensees) to use credit cards to purchase liquor has been accepted whole-heartedly in the state of Utah. To this point, credit card use has been regulated by internal agency policy. Relocating these regulations in the department's administrative rules will have no anticipated fiscal impact on these businesses.

 

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

Alcoholic Beverage Control
Administration
1625 S 900 W
SALT LAKE CITY UT 84104-1630

 

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 [e-mail]

 

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:

05/17/2004

 

This rule may become effective on:

05/18/2004

 

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 if it can be done by peaceful means. 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. If the card is confiscated, the store employee should immediately destroy the card by cutting it in half lengthwise. The card should then be sent to the owner's bank with a completed LQ-55 form.

(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

[July 1, 2002]2004

Notice of Continuation November 16, 2001

32A-1-107

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