Zip for the car requires ZIP code

At some gas station pumps, customers are now being asked for their home ZIP codes to prevent credit card theft.

LAUREN BAYNE ANDERSON
May 2, 2005
St. Petersburg Times


ST. PETERSBURG - Last October, Texaco corporate headquarters installed technology at some local gas stations requiring credit card customers to enter their ZIP codes before pumping gas.

It took local Texaco owner Kathy Bauerte two weeks to have it removed.

"I hate it," said Bauerte, who owns Fred's Texaco on Fourth Street N. "Some people don't know their ZIP code. I've had others say they won't tell me."

Texaco temporarily removed the technology from her pumps, but brought it back this month. And now it's here to stay.

Many area gas stations in recent months began requiring credit card users to enter their ZIP codes when paying at the pump. It's a security measure to prevent stolen credit cards from being used to purchase gas. And with the high price of gasoline, theft has been an increasing problem.

With the new requirements, customers using debit cards still are prompted to enter their PIN numbers, and credit card users now must enter ZIP codes in many area stations.

Bauerte said she has seen customers get angry and storm away when they can't remember their ZIP codes. Sometimes they've recently moved, are elderly or are using corporate cards, and they don't know where the bill is sent, she said.

Customers who don't know their ZIP usually can show ID or sign for the gas inside the store without giving their number.

In 2003, consumers purchased $145-million in gas with their credit and debit cards.

According to David Robertson, publisher of the Nilson Report, a consumer payment trend publication, more than 50 percent of gas customers pay with plastic.

Robertson said credit card thieves for years have used unattended gas pumps to check whether stolen credit cards were still active, before taking them to a store and purchasing goods pawnable for cash.

"One of the first things a thief will do is go to an unattended gas pump and put the card in to see if it's still alive," he said. "Now, with gas prices so high, there's not only the opportunity to check if it's a live card, but stolen cards are being used for stolen gas."

Gas stations are the only businesses to ask for ZIP code verification, he said. But the technology is similar to other verification systems used by online companies like Amazon.com, which require credit card customers to verify their address.

"It's absolutely essential in this day and age," Robertson said. "This just lets us know the value of gas in our society right now."

The technology has been used in California for about three years, he said, and recently has made its way to Florida.

At some local Chevron stations, blue signs posted at the pumps warn credit card customers of the new requirements. "You will be prompted to enter your billing ZIP code," it reads. "This is for your added security and protection only and will not be used for marketing purposes."

Anthony Barreto, owner of Gandy Chevron in Tampa, said Chevron began requiring his station to ask for ZIP codes in February. Customers complained only for the first couple weeks, he said.

"At first people thought it was soliciting, and they'd come in and ask what it's for," Barreto said. "But people started realizing, maybe it doesn't hurt."

Kim Faulk, a marketing executive in Tampa, said she doesn't mind the extra security measures. Faulk said she once had her credit card stolen. The thief ran up a $2,000 bill before he was stopped, she said.

"I don't have a problem showing ID or punching in a ZIP code," Faulk said. "It's just part of where we're going as a society."

But Alissa Rodriguez, a student at the University of South Florida, said she doesn't feel her card is any more secure because the machine asks for her ZIP.

"It's annoying - it just takes more time," she said, after punching in her ZIP code at the pump Tuesday at Bauerte's Texaco. "And if someone stole it from around here, they'd know the ZIP code anyway."

Barreto said he's happy with the new requirement, because he has seen suspicious customers detered from buying gas.

"If it's a stolen card, they'll make an excuse and walk away or just drive off," after the machine asks for the ZIP code, he said. "It works."

Robertson said customers will see the changes mainly in big-name gas stations. Mom-and-pop shops often can't afford the technology, he said.

Bauerte said about 75 percent of the gas sales at her station are paid for with plastic. Once customers understand why they are being asked, most don't mind.

"I feel bad when people can't remember it, and they feel stupid," she said. "But I tell them, if you dropped your card at my pump, no one can use it."