is zip code encoded in track1 or track2?

[rx.jeff]

i just had an interesting question from a client who wanted to charge their customers more if out of town patrons used credit cards for payment. one line of thought was that as soon as the machine reads the credit card and (assuming that the zip code is encoded), it would charge $x more if out of predefined "local" zip code.

i didn't think it was encoded and thought i would confirm it with you guys. i've taken a look at the track1 and track2 of my own real cc and couldn't see it. what say you?

[stewart05]

I don't belive it is on any track data.

On a side note, I belive that what your cutomer wants to do is against their merchant agreement, so you might want to advise them against it.

[ADail]

Google is almost as cool as duct tape & WD-40.

http://www.tech-faq.com/mag-stripe-cards.shtml

[jbhall56]

i just had an interesting question from a client who wanted to charge their customers more if out of town patrons used credit cards for payment. one line of thought was that as soon as the machine reads the credit card and (assuming that the zip code is encoded), it would charge $x more if out of predefined "local" zip code.

i didn't think it was encoded and thought i would confirm it with you guys. i've taken a look at the track1 and track2 of my own real cc and couldn't see it. what say you?

You've got to love it. Ranks up there with the urban myth that hotel guests' personal information is encoded on hotel key cards. Both are a big load of BS.

No where on any credit card is the cardholder's zip code encoded. What they are likely referring to is some merchants at unattended POS are asking for the cardholder's zip code instead of CVV/CVC/CID because zip code is easier for the customer to remember. They use the zip code when they authenticate the card with their processor.

[ADail]

It could also be something like when automated fuel dispensers ask for Zip code as part of address verification. Typically the function is turned on in high-fraud areas. You'll often also encounter velocity settings of 1,2, or 3, which is the number of times a card can be used outside during a 24 hour period.