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Visa bars merchants from “data pass” marketing

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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