Um
no.
It is not illegal to specify an ID that has your current address & photo.
A passport only has your name and date & place of birth - it lacks any form of residency requirement which credit card companies need to verify. It also has picture from 10 years ago.
While a passport may be fine for domestic and international travel with the feds (TSA, DHS, CBP, ICE, FBI, and USM), it is not sufficient to prove residency within the USA.
A card company can specify what type of ID to verify.
Just like the state driver's licenses that are now called Real ID.
In my state, we are still delayed and have 3 types of ID revolving around:
- Real ID
- Federal Limits Apply
- Legacy ID
When I applied for the Apple Card, I did not have to provide a scan or photo of my ID - all my info was already pre-populated except for annual income and last 4 SSN.
I currently still have the legacy ID and it is currently treated as a "Real ID" without the domestic plane privileges.
Going to hang onto my "old" license till it expires and forced to get a Real ID.
I dread the Real ID because I have to use my passport plus 2 proof of residency documents in order to apply for a Real ID.