Visa bars merchants from "data pass" marketing

Share this article:
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
Share this article:

Sign up to our newsletters

More in News

Michaels class-action suit tossed after plaintiffs can't show damage

A judge ruled that plaintiffs couldn't show monetary damage in suit filed after a breach exposed data on 2.6 million of the retailer's customers.

New backdoor 'Baccamun' spreads through ActiveX exploit

Symantec researchers revealed that the backdoor is dropped after attackers exploit a Windows ActiveX vulnerability.

Outdated browsers put U.K. users at risk of malware

A blog post on Check and Secure website said 70 percent of U.K. users haven't fully updated their internet browsers