> I doubt any merchant ever has been punished for violating the cardholder agreement in this fashion.
There used to be forms on the Visa and MasterCard site to report this specific violation. So, yes, I imagine some merchants were reprimanded for requiring ID.
Be that as it may, your options are generally
a) show your ID anyway b) walk out without the stuff you came for
I doubt any merchant ever has been punished for violating the cardholder agreement in this fashion.