No, that is absolutely not what the law says. http://www.cardreport.com/laws/california/1747-1748-7.html http://www.cardreport.com/laws/california/1747-1748-7.

No, that is absolutely not what the law says. http://www.cardreport.com/laws/california/1747-1748-7.html http://www.cardreport.com/laws/california/1747-1748-7.html The law prohibits recording personally identifiable information, unless it's absolutely required for the transaction (for instance if your CC contract requires it, another law requires it, you're delivering something, etc). In particular, it explicitly allows checking ID: (d) This section does not prohibit any [retailer] from requiring the cardholder, as a condition [blahblah], to provide reasonable forms of positive identification, which may include a driver's license [...], or [...], another form of photo identification, provided that none of the information contained thereon is [...] recorded [...].