Visa bars merchants from "data pass" marketing

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Visa announced Tuesday that it has banned merchants from providing cardholder data to third parties without first receiving consent from the consumer. The new rule is a move to prevent a deceptive practice known as "data pass," by which a shopper, during checkout, is prompted to enroll in a club membership. The customer often does not realize the offer originates from a different merchant or that it comes with additional fees and charges, Visa said. Under the new rule, consumers will have to re-enter their credit card information if they wish to sign up for the promotions, which have cost some 30 million Americans about $1.4 billion, said Visa, citing a 2009 report from the U.S. Senate Commerce Committee. — DK
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