DAR File No. 39330

Alcoholic Beverage Control, Administration

Section R81-2-9

Accepting Credit Cards as Payment for Liquor

Notice of Proposed Rule

(Amendment)

DAR File No.: 39330
Filed: 04/30/2015 04:51:57 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This section is removed to allow the director to make internal department policies regarding a payment for products.

Summary of the rule or change:

This change removes the prohibition of credit card sales by licensees and will also move operational requirements regarding the use of credit cards to department policies.

State statutory or constitutional authorization for this rule:

• Section 32B-2-202

Anticipated cost or savings to:

the state budget:

None--This rule is necessary to authorize the director to make internal department policies regarding payment for products. Any cost to the state has been authorized by the legislature through the budgetary process and not as a result of this rule amendment.

local governments:

This rule is necessary to authorize the director to make internal department policies regarding payment for products and does not affect local government. Therefore will not incur any cost or savings to local government.

small businesses:

This rule is necessary to authorize the director to make internal department policies payment for products. There will be no anticipated cost or savings for small businesses.

persons other than small businesses, businesses, or local governmental entities:

This rule is necessary to authorize the director to make internal department policies regarding payment for products. There will be no anticipated cost or savings for persons other than small businesses, businesses or local government entities.

Compliance costs for affected persons:

None--This rule is necessary to authorize the director to make internal department policies regarding payment for products. Any changes to the program will not have compliance costs passed on to the consumer without going through the fee assessment processes outlined in Section 63J-1-504.

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

None--This rule is necessary to authorize the director to make internal department policies regarding payment for products. Any fiscal impact has been authorized by the legislature through the budgetary process and not as a result of this rule amendment.

Salvador D. Petilos, Executive Director

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:

• Nina McDermott at the above address, by phone at 801-977-6805, by FAX at 801-977-6888, or by Internet E-mail at [email protected]
• Andrew Hofeling at the above address, by phone at 801-977-6835, by FAX at 801-977-6888, or by Internet E-mail at [email protected]

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:

06/15/2015

This rule may become effective on:

06/22/2015

Authorized by:

Sal Petilos, Executive Director

R81. Alcoholic Beverage Control, Administration.

R81-2. State Stores.

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

[(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 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 can be willingly surrendered and confiscated, the store employee should 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

Date of Enactment or Last Substantive Amendment: [April 30, 2013]2015

Notice of Continuation: May 10, 2011

Authorizing, and Implemented or Interpreted Law: 32B-2-202