New Texas Law Requires Photo ID for Credit, Debit Purchases


A state law goes into effect in January allowing retailers to turn down credit and debit card purchases without photo identification.

Credit card companies call SB 1381 confusing and argue it goes against their contract with merchants which prohibits them from denying a purchase if the consumer refuses to show ID.

But Stephen Scurlock, executive vice president of the Independent Bankers Association of Texas, says it is strictly voluntary.

“There are no penalties. There's no shift in liability. There's no mandate. This is just to allow a merchant to check an ID if they choose to do so,” he says.

“If you're using a card that does not match your name then there is certainly a possibility that it could be turned down.”

Scurlock says it’s just one extra step retailers can take to protect themselves and consumers from fraud.

Supporters are hoping new anti-fraud technology emerges before the law expires in 2023.


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