Laws on keeping credit card info on file?

[subzero22]

I'm in New Mexico and got a question about Direct TV practices.

Ok my friend who currently doesn't have internet access asked me to check up on something. I searched google for about 2 hours and couldn't find anything so I'm hoping someone here can help me.

My friend lets call him Jay. Well Jay couldn't pay this month for his direct tv bill so asked his mom for help. They called direct tv up and she payed and told them that they only have authorization to use her credit card for that one time payment. Well when the call was about to be over Jay's mom asked them to remove her credit card info off her account. They wouldn't do it. What is the legal laws on keeping a customers cc on file or even someone elses cc on file that they don't have a contract with?

I've searched a lot on direct tv keeping cards on file and then charging later even without being authorized. But wouldn't that be considered fraud especially since Jay's mom only authorized it as a one time payment.? Is there any laws on if the owner of a cc wanted their info removed wouldn't they have to do it?

 

[Chyvan]

then charging later even without being authorized.

If this happens, all Jay's mom has to do is file a dispute with her card issuer, and she'll get her money back.

 

[FlyingRon]

There's no law that prohibits keeping things on file. The merchant agreements generally don't either other than they require you not to retain the CV2 codes though such is NOT necessary to bill the card, it's only a tool to verify the card is good.

 

[justalayman]

They actually need to retain the info, at least for a reasonable amount of time. If the payor later claims they didn't make payment and there is a dispute the vendor needs to have records of who paid and the means of payment.

 

[FlyingRon]

They actually need to retain the info, at least for a reasonable amount of time. If the payor later claims they didn't make payment and there is a dispute the vendor needs to have records of who paid and the means of payment.

I write software to interface websites to payment processors. The information is retained by the processor in the vendor's account information. I can go back and pull up an old transaction and resubmit it, or even use the information for a new transaction without having to keep any of that information myself. The CV2 isn't retained (and it's unneeded at that point as the AVS and similar checks have already been run.

 

[justalayman]

You're taking over my head run but if I was a vendor I can assure you I would retain all data applicable to any transaction for some period of time.