Improper Credit Card Receipts Increase Risk of Identity Theft

Under federal law, no transaction receipt can include the credit or debit card expiration date or any other numbers than the last five digits on the card. However, it has recently come to the attention of the Federal Trade Commission (FTC) that some merchants have not taken adequate care to ensure that this vital privacy information was properly safeguarded.

Ever since Dec. 1, 2006, the Federal Trade Commission has required all electronically printed credit and debit card receipts to truncate the card number to protect the customers account information. This rule is under the FTC’s Fair and Accurate Credit Transaction Act (FACTA) policy, which states that the expiration date must somehow be deleted or hidden from view in some way on the receipt, and in no way should any more than the last five numbers on the card ever be shown.

The reason for this strictness is to protect consumers’ vital financial information, as those bits of information provide some of the easiest ways for identity thieves to commit fraud against consumers. While there are many different ways identity thieves can access a consumer’s finances and other personal information, experts state that credit or debit card information is one of the easiest methods for these criminals to commit fraud.

Furthermore, it is not just consumers who are effected by identity theft and fraud. Business owners are also at risk because identity thieves could potentially gain access to other consumers through their electronic privacy system. Additionally, protecting the personal information of their customers is generally in the best interest of the merchant or company.

Overview of FACTA Compliance

While Congress originally passed FACTA in December 2003, it has been a long and gradual process to implement throughout the United States, due to the wide range of merchants and the different transaction devices they could afford. In fact, the government actually required merchants with older transaction machines to update their devices to a technological level that would have met FACTA policy by December 2004. Merchants with very old machines were given until Dec. 1, 2006 to meet the FACTA standard, which would ensure that their consumers would have lowered chances of being a victim of identity theft.

Any businesses or merchants found to not be in FACTA compliance could lead to potential legal action such as civil penalties and injunctive relief. Additionally, FACTA policy also provides a provision to consumers whose numbers were not concealed, where the consumer could potentially sue the company for FACTA violations.

It is important to note that FACTA policy only applies to electronically printed receipts while handwritten or imprinted ones are omitted. Additionally, it only applies to receipts given to the customer at the point of sale, not to any transaction record the merchant retains. This applies to all electronic receipts that are printed by cash registers, self-service kiosks, and restaurants. Ultimately, merchants are only supposed to show what is absolutely necessary on debit or credit card receipt to protect the privacy of the consumer.

Any consumer who believes that a retailer did not comply with FACTA is encouraged to contact a specialized lawyer to see if they may be eligible to pursue legal action.

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.

Get Started