CHAPTER 210

SB 149-FN - FINAL VERSION

03/06/03 0412s

29may03... 1557h

2003 SESSION

03-1118

05/10

SENATE BILL 149-FN

AN ACT establishing criminal penalties for the use of a credit card scanning device or reencoder to defraud.

SPONSORS: Sen. Morse, Dist 22; Sen. Below, Dist 5; Rep. Rausch, Rock 77; Rep Nedeau, Belk 30

COMMITTEE: Judiciary

ANALYSIS

This bill establishes criminal penalties for the use of a credit card scanning device or reencoder to defraud the credit card's authorized user, the issuer of the credit card, or a merchant.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/06/03 0412s

29may03... 1557h

03-1118

05/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT establishing criminal penalties for the use of a credit card scanning device or reencoder to defraud.

Be it Enacted by the Senate and House of Representatives in General Court convened:

210:1 New Subdivision; Fraud; Illegal Use of Payment Card Scanning Device or Reencoder. Amend RSA 638 by inserting after section 27 the following new subdivision:

Illegal Use of Payment Card Scanning Device or Reencoder

638:28 Definitions. In this subdivision:

I. "Scanning device" means a scanner, reader, or any other electronic device that is used to access, read, scan, obtain, memorize, or store, temporarily or permanently, information encoded on the magnetic strip or stripe of a payment card.

II. "Reencoder" means an electronic device that places encoded information from the magnetic strip or stripe of a payment card onto the magnetic strip or stripe of a different payment card.

III. "Payment card" means a credit card, charge card, debit card, or any other card that is issued to an authorized card user and that allows the user to obtain, purchase, or receive goods, services, money, or anything else of value from a merchant.

IV. "Merchant" means an owner or operator of any retail mercantile establishment or any agent, employee, lessee, consignee, officer, director, franchisee, or independent contractor of such owner or operator. A merchant includes a person who receives from an authorized user of a payment card, or someone the person believes to be an authorized user, a payment card or information from a payment card, or what the person believes to be a payment card or information from a payment card, as the instrument for obtaining, purchasing or receiving goods, services, money, or anything else of value from the person.

638:29 Use of Scanning Device or Reencoder to Defraud Prohibited.

I. A person is guilty of the crime of using a scanning device or reencoder to defraud when the person knowingly:

(a) Uses a scanning device to access, read, obtain, memorize, or store, temporarily or permanently, information encoded on the magnetic strip or stripe of a payment card without the permission of the authorized user of the payment card and with the intent to defraud the authorized user, the issuer of the authorized user's payment card, or a merchant; or

(b) Uses a reencoder to place information encoded on the magnetic strip or stripe of a payment card onto the magnetic strip or stripe of a different card without the permission of the authorized user of the card from which the information is being reencoded and with the intent to defraud the authorized user, the issuer of the authorized user's payment card, or a merchant.

II. Using a scanning device or reencoder to defraud is:

(a) A class B felony if such person has one or more prior convictions in this state or another state for the conduct described in this section.

(b) A class B felony if such person used a scanning device or reencoder to defraud 2 or more times in violation of this section.

(c) A misdemeanor in all other cases.

210:2 Effective Date. This act shall take effect 60 days after its passage.

(Approved: June 30, 2003)

(Effective Date: August 29, 2003)