Don’t be mistaken over identity

Backpacker hostels routinely scan ‘proof of identity’ documents to verify the identity of payers who use credit cards.Common proof of identity documents are passports, driver’s licences, or any government-issued cards which contain a photograph and signature.
While the Privacy Commissioner suggests that businesses might make do with simply sighting the documents, you are best advised to keep a record by taking a photocopy or scanning the
document directly into your computer if a credit card payment is involved. This can then be used as evidence if the transaction is later queried.
The Privacy Commissioner is particularly concerned with scanned copies because scanning increases the risk that the personal information collected could be used for improper purposes, such as direct marketing or the creation of customer databases. The data might also be used for identity crime.
All backpacker hostels which collect proof of identity documents in Australia must comply with the National Privacy Principles, which are summarised as:

  1. Tell the customer when the personal information is collected.
  2. Tell them why it is being collected, and only use it for that purpose.
  3. Tell them what will happen to the information collected.
  4. Allow the customer access to the information.
  5. Keep the information secure (and do not disclose it).
  6. Securely destroy the information as soon as it is no longer required.

It is advisable to have a privacy policy in place. Allied with this is the obligation of merchants who store credit card data to comply with the Payment Card Industry Data Security standard, which is similar to the National Privacy Principles and requires an information security policy to be in place.

For further information visit www.privacy.gov.au/publications/IS20_07_print.html, www.visa-asia.com/secured and http://sdp.mastercardintl.com.

Australian travel and tourism lawyer Anthony Cordato contributes a regular column to Backpacker Trade News. Got a question for Anthony? E-mail ian@backpackertradenews.com or visit www.tourismlegal.com.au.

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