Credit and Debit Card Receipt Laws Help Protect Consumers

According to recent surveys, about 70 percent of U.S. adults regularly use credit cards. When you add in those individuals who use debit cards to pay for purchases, the number of individuals paying for daily transactions via non-cash means is estimated to be at around 80 percent.

With the high volume of sales being conducted via credit card and debit card transactions, consumers need to be continually cautious to ensure that their financial information is kept safe.

In order to protect consumers and their financial information, Congress has enacted credit card receipt laws to address customer safety.

What is FACTA?

The Federal government originally enacted the Fair Credit Reporting Act in 1970. This act required financial institutions to report accurate information that would appear on an individual’s credit report, and included consumer credit card information.

FACTA, or the Fair and Accurate Credit Transaction Act of 2003, was an amendment to the Fair Credit Reporting Act. This act enabled consumers to access a free annual credit report from Experian, Equifax and TransUnion to monitor their financial information as recorded by the credit bureaus.

FACTA also provided additional provisions to combat identity theft by requiring businesses to follow certain security measures to protect consumer information.

How Does FACTA Protect Consumers?

FACTA protects consumers by limiting the amount of information that can appear on a credit card receipt.

Before the debit card and credit card receipt laws were enacted under FACTA, there was no regulation on what could appear on debit card and credit card receipts. Some businesses would issue receipts with entire credit or debit card account numbers, and the card’s expiration date.

If a customer tossed such a receipt into the garbage or accidentally dropped a receipt with their account number and expiration date, an identity thief could easily use the information printed on the receipt to gain access to private information.

Under FACTA, businesses are now prohibited from printing more than the last five digits of a customer’s account number on a point of sale transaction receipt. Printing more than five digits, or printing digits other than the last five digits, constitute a FACTA violation.

FACTA also prohibits businesses from printing any part of the expiration date on a credit card or debit card receipt. If a business printed the month or year or both, this is a direct violation of FACTA.

FACTA Violations

If a business is found to be in violation of FACTA, it may face damages in the amount of $100 to $1,000 per transaction. For a high-volume business, the amount of damages resulting from violations can add up quickly.

Consumers have brought class action lawsuits against various companies for FACTA violations. According to a survey of class action lawsuits in California, the alleged damage amounts reported in conjunction with the lawsuits ranged from $4 billion to nearly $40 billion.

FACTA Lawsuit Information

If you received a receipt that violated debit card and credit card laws by printing more than the last five digits of your account number or by printing your card expiration date, you may have a legal claim. A FACTA attorney can review your case at no charge and can help you understand your legal options regarding filing an individual FACTA lawsuit or joining a FACTA class action lawsuit.

Free FACTA Class Action Lawsuit Investigation

If you made one or more purchases and the retailer provided you with a receipt that contained more than the last five digits of your credit or debit card number or the expiration date, you may be eligible for a free class action lawsuit investigation and to pursue compensation for these FACTA violations.

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