State of California lawmakers approved on Sunday a bill that will prohibit most companies keep credit or debit card customer numbers, verification codes or personal identification numbers. Companies that accept recurring payments will be allowed to retain this information, but they will be required to follow specific guidelines set by the credit card industry to protect these data to customers. These guidelines include strengthening electronic firewall, encryption of personal information and limit access only to employees whose jobs require them to see the payment data.
The bill is similar to one that was vetoed by Schwarzenegger governor last year, partly because of a clause requiring retailers to reimburse customers for the card replacement cost credit and debit. The new bill does not make this requirement retailers. Instead, it requires retailers to inform customers of data breaches. This bill is still disputed by many retailers.
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