325E.64 ACCESS DEVICES; BREACH OF SECURITY.
Subdivision 1. Definitions.
(a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.
(b) "Access device" means a card issued by a financial institution that contains a magnetic
stripe, microprocessor chip, or other means for storage of information which includes, but is not
limited to, a credit card, debit card, or stored value card.
(c) "Breach of the security of the system" has the meaning given in section
subdivision 1, paragraph (d).
(d) "Card security code" means the three-digit or four-digit value printed on an access device
or contained in the microprocessor chip or magnetic stripe of an access device which is used to
validate access device information during the authorization process.
(e) "Financial institution" means any office of a bank, bank and trust, trust company with
banking powers, savings bank, industrial loan company, savings association, credit union, or
(f) "Microprocessor chip data" means the data contained in the microprocessor chip of an
(g) "Magnetic stripe data" means the data contained in the magnetic stripe of an access device.
(h) "PIN" means a personal identification code that identifies the cardholder.
(i) "PIN verification code number" means the data used to verify cardholder identity when a
PIN is used in a transaction.
(j) "Service provider" means a person or entity that stores, processes, or transmits access
device data on behalf of another person or entity.
Subd. 2. Security or identification information; retention prohibited.
No person or entity
conducting business in Minnesota that accepts an access device in connection with a transaction
shall retain the card security code data, the PIN verification code number, or the full contents
of any track of magnetic stripe data, subsequent to the authorization of the transaction or in the
case of a PIN debit transaction, subsequent to 48 hours after authorization of the transaction. A
person or entity is in violation of this section if its service provider retains such data subsequent to
the authorization of the transaction or in the case of a PIN debit transaction, subsequent to 48
hours after authorization of the transaction.
Subd. 3. Liability.
Whenever there is a breach of the security of the system of a person or
entity that has violated this section, or that person's or entity's service provider, that person or
entity shall reimburse the financial institution that issued any access devices affected by the
breach for the costs of reasonable actions undertaken by the financial institution as a result of the
breach in order to protect the information of its cardholders or to continue to provide services to
cardholders, including but not limited to, any cost incurred in connection with:
(1) the cancellation or reissuance of any access device affected by the breach;
(2) the closure of any deposit, transaction, share draft, or other accounts affected by the
breach and any action to stop payments or block transactions with respect to the accounts;
(3) the opening or reopening of any deposit, transaction, share draft, or other accounts
affected by the breach;
(4) any refund or credit made to a cardholder to cover the cost of any unauthorized
transaction relating to the breach; and
(5) the notification of cardholders affected by the breach.
The financial institution is also entitled to recover costs for damages paid by the financial
institution to cardholders injured by a breach of the security of the system of a person or entity
that has violated this section. Costs do not include any amounts recovered from a credit card
company by a financial institution. The remedies under this subdivision are cumulative and do not
restrict any other right or remedy otherwise available to the financial institution.
History: 2007 c 108 s 1
Subdivision 3, as added by Laws 2007, chapter 108, section 1, is effective August 1,
2008, and applies to breaches of the security of a system occurring on or after that date. Laws
2007, chapter 108, section 1, the effective date.