Data Retention for ID Scanners in Bars: Why Less is More

Data Retention for ID Scanners in Bars: Why Less is More

Introduction to ID Scanning in Bars

A bar owner in Savannah will never forget the night everything changed. What began as a routine ID check quickly spiraled into a compliance nightmare. A state sting operation revealed their scanner had been quietly storing patron data for months, and much longer than state law allowed.

The result? 

A hefty fine, a damaged reputation, and a liquor license on the line. The owner hadn’t set out to break the rules, they just didn’t know their scanner was hoarding sensitive personal information in the cloud.

They weren’t alone. A lawsuit has already targeted a major company accused of overreaching by storing and flagging ID and biometric information in a centralized system and automatically sharing it across multiple venues (Wexler Boley & Elgersma LLP).

Cases like this highlight how a simple ID check can become a privacy minefield.

Running a bar isn’t just about pouring drinks; it’s about creating a safe, compliant, and trustworthy space for your customers. From checking IDs at the door to ensuring alcohol is served responsibly, every decision impacts both your bottom line and your reputation.

That’s why ID scanners for bars have become indispensable for owners and managers who need to quickly and accurately verify age and IDs and help spot fake IDs. But here’s the catch: many scanners collect far more data than necessary, and worse, they may store it indefinitely, often in the cloud.

While this ”extra data” is marketed as a safeguard, it often creates greater risks that include legal exposure, compliance headaches, and a loss of trust with the very customers you’re trying to protect. 

In this guide, we’ll show you why a “less is more” approach to data retention is the smartest move. By collecting only what’s necessary, you’ll stay compliant, safeguard your liquor license, and protect your patrons’ privacy—without the burden or cost of storing data you don’t actually need.

What Data Does an ID Scanner for Bars Collect? 

Depending on the model and settings, an ID scanner for bars, often referred to as a driver’s license scanner may collect the following customer data:

  • Full name
  • Date of birth (DOB)
  • License number
  • ID expiration date
  • Address
  • Timestamp of scan
  • Venue/location data
  • Optional: Photograph of the ID holder

Many bar owners assume that all of this must be stored, but that’s not always true. Only essential data is required for compliance. Holding onto more data means more legal responsibility and privacy risks.

The Myth of “More Data = More Security”

It’s tempting to think, “The more info we keep, the safer we are.” But collecting excess data doesn’t mean you're more secure. In fact, the opposite is often true.

Why Overcollection Backfires:

More data = bigger target for hackers

Harder to manage and protect over time - more resources are needed for storage, maintenance, and staff management.

Creates liability if breached

May violate privacy laws like CCPA or GDPR

Staff may misuse or accidentally share personal info

Instead, bar owners should ask: What’s the minimum amount of information we actually need to verify age and protect ourselves legally?

Legal Landscape for ID Data Retention

ID Scanner Laws for Bars: Key Privacy and Compliance Rules 

  • CCPA (California Consumer Privacy Act): Businesses must inform customers what personal data is collected and allow them to request deletion.
  • GDPR (General Data Protection Regulation – EU): Requires data minimization and accountability in handling personal information.
  • State Privacy Laws: Many states have their own rules on ID scanning—some prohibit storing PII without consent.
  • Industry Guidelines: Bars must comply with liquor licensing boards, which may require proof of due diligence but not long-term retention.

What Counts as PII?

PII stands for Personally Identifiable Information, which includes:

  • Full name
  • Driver’s license number
  • Birthdate
  • Address
  • Any data tied to an individual

Holding PII without justification makes you responsible for its protection and vulnerable if it's exposed.

Industry Standards from Security Experts

What the Experts Say:

Security consultancies and industry frameworks strongly advocate data minimization, especially when handling sensitive personally identifiable information (PII).

  • ISACA: Only collect data tied to a business purpose and discard it once that purpose is fulfilled.
  • KPMG: Reducing data retention limits legal and reputational risk.
  • TrustArc: Advocate for privacy-by-design—build minimal retention into your systems from day one.
  • Legion Cyberworks: Warns that excessive PII creates a massive breach risk, especially in cloud environments.

“The more data you hold, the more attractive you are to attackers.” — Cybersecurity consultant, TrustArc

How This Applies to ID Scanners in a Bar Setting

1. Lower Breach Targets

Storing fewer scans means that if a breach occurs, the exposed data is limited, decreasing legal exposure and remediation costs. This principle is endorsed by cybersecurity policymakers advocating for intentional data disposal practices legioncyber.comkpmg.com

2. Easier Compliance

Regulations like CCPA/CPRA and GDPR enforce data minimization. Holding scans beyond necessity—especially sensitive PII like date of birth or driver’s license number—can violate these laws. Good retention policies support compliance and avoid unnecessary risk, ISACATrustArc.

3. Cost-Savings and Practicality

The more data you store, the more resources are needed for storage, maintenance, and staff management. Simple exports (like CSV with minimal metadata) and periodic purging keep operations efficient and secure smartechdaily.comkpmg.com

Practical Risks of Cloud-Based Data Storage

While some ID scanners for bars use the cloud to store data for convenience, this approach can lead to:

Data Breaches

Cloud systems are often targets for:

  • Ransomware
  • Unauthorized access
  • Poor configuration vulnerabilities
  • Insider threats

Compliance Issues

Most data privacy laws require:

  • Encryption at rest and in transit
  • Breach notifications
  • Justification for data retention

Increased Costs

Cloud platforms charge monthly storage fees, retrieval fees, and often lock you into their ecosystem.

Data Retention Best Practices for Bar Owners

Here’s how you can apply smart data policies starting today:

1. Decide What to Keep and Why

Only store what’s necessary:

  • Timestamp
  • Age scanned 
  • ID validity (able to read the digital format)
  • Don't retain a photo unless required by law.

2. Set Retention Limits

Delete data after 7–30 days unless needed for legal reasons. 

3. Document retention policies

Set clear rules for the scan data lifecycle, which is a must-have piece of evidence for audits

4. Favor Local Storage

  • Avoid cloud platforms when possible.
  • Use encrypted SD cards or internal memory.
  • Disconnect storage from internet-accessible devices.
  • Simple exports (like CSV with minimal metadata) and periodic purging keep operations efficient and secure smartechdaily.comkpmg.com

Building a Privacy-First Culture in Your Bar

Train Staff to:

  • Use the scanner for age verification only
  • Never take photos of IDs on personal phones
  • Avoid discussing customer info aloud
  • Explain data use policies if asked by customers

Display a Notice:

“We scan IDs for age verification only. No personal information is stored beyond what’s legally required.”

Transparency earns trust and keeps you legally protected.

Benefits of Data Minimization in the Bar Industry

✔️ Protects Your Reputation

✔️ Lowers Liability and Compliance Risk

✔️ Improves Customer Trust

✔️ Reduces Cloud Costs

✔️ Simplifies Staff Training

FAQs – Data Retention for ID Scanners in Bars

Q1: Do I need to keep scanned ID data for legal reasons?

A1: Yes, for age compliance proof. ID logs with timestamps and age status may be enough unless your state requires full records for a specific time.

Q2: Is storing data in the cloud illegal?

A2: Not necessarily, but it raises compliance issues under CCPA and GDPR. It also increases the risk of breach.

Q3: Can I use a scanner without saving personal data?

A3: Yes—many scanners offer "verify-only" modes that check age without storing the transaction.

Q4: What if a customer asks me to delete their data?

A4: Under laws like CCPA, you must comply unless data is required for legal retention, such as age and ID check compliance. Check with your legal advisor.

Q5: Is local storage safer than the cloud?

A5: Generally, yes. It keeps data off the internet and under your control.

Q6: Do I need customer consent to scan IDs?

A6: Some states do require it. Always post signage and check your local laws.

Conclusion: Smarter, Safer ID Data Practices

As a bar owner, protecting your license is essential, but protecting your customers’ data is just as important.

By applying data minimization principles—only collecting and retaining what you truly need—you reduce risk, build trust, and stay ahead of evolving privacy regulations.

Less data means more safety.

Smart bars know that a clean scan today shouldn’t create a privacy nightmare tomorrow.

At ViAge Solutions, we believe ID scanning should protect your business, not put it at risk. That’s why our scanners are designed with privacy at the core. No cloud uploads. No excessive data capture. Just fast, reliable age verification that keeps you compliant and builds trust with your patrons.

Whether you're running a bar, liquor store, or dispensary, we help you meet legal requirements without compromising customer privacy. Our systems store data locally, and give you full control over retention settings—so you collect only what you need, and nothing more.

We’re proud to support responsible retailers with tools that are simple, secure, and built for today’s privacy-conscious world.

Source List for Your Blog References

https://themarkup.org/2024/07/27/id-scanners-can-change-how-your-local-bar-treats-you-and-whether-it-lets-you-in?

https://wbe-llp.com/investigations/patronscan-biometric-privacy-lawsuit/

ISACA – “Retention periods and data minimization best practices” sslinsights.com+1kpmg.com+1reddit.com+1sslinsights.com+1smartechdaily.com 

TrustArc – Article on data minimization necessity TrustArc+1legal-rm.com+1 

Smartech Daily – “Collect less, protect more” strategy smartechdaily.com 

KPMG Insights – Regulatory expectations on data retention/deletion kpmg.com 

Greenberg Traurig LLP – Balancing retention and compliance gtlaw.com

Legion Cyberworks – Security risk of retaining large PII sets legioncyber.com 

Leave a Comment