How To Comply With FACTA Rules?

The Fair and Accurate Credit Transactions Act (FACTA) exists to help protect consumer information.

Simple knowledge of credit card regulations, like knowing what counts as a FACTA violation and how to file a FACTA class action lawsuit in response, can help keep your information and identity safe.

It may even lead to financial compensation for any regulations broken.

FACTA Background

The Fair and Accurate Credit Transactions Act, also known as FACTA, was first passed in 2003 and was intended to protect consumers’ credit card receipt information from thieves and fraudsters.

Being able to spot FACTA violations on credit card receipts and act to report them can not only protect you, but potentially thousands of other customers who have been affected by the same violation.

FACTA Violations and Rules

The Fair and Accurate Credit Transactions Act requires truncation, or the shortening of information, to protect what goes on our credit card receipts. Truncation must be done in a specific way in order to properly comply with regulations.

You may notice that the information on your receipts have been censored. This is because, according to FACTA Act regulations, only the last five digits of a credit card number may be displayed on a receipt. The rest are often censored with asterisks.

According to FACTA, receipts may not show any more than the last five digits, and digits cannot be taken from anywhere other than the last five spaces. Many businesses choose to ensure compliance with the rules by censoring everything except the last four digits, as credit card numbers come in four digit segments.

Credit card receipts and debit card receipts, when following rules properly, should look something like this:

**** **** **** 1234

However, because five digits are allowed, it may also look like this:

**** **** ***1 2345

Receipts may not show digits from elsewhere in the credit card number, even if five or fewer are showing. Therefore, under FACTA, this is not allowed:

1234 **** **** ****

In addition to card number truncation, FACTA prohibits the card’s expiration date from being printed on the receipt.

It should be extremely easy for businesses to comply with FACTA regulations, given that this is an automated process. Businesses only have to make sure their machines are up-to-date, set to follow regulations to the letter.

Only electronic receipts are included in these regulations; hand-written receipts are exempt. Of course, hand-written receipts are rare enough in this day and age that it is not generally a concern.

FACTA Lawsuits

The Fair and Accurate Credit Transactions Act awards statutory damages of up to $1,000 per violation – whether or not the consumer actually suffered any real or substantial injury, such as identity theft. The violation itself is penalized.

Because FACTA violations are tied to electronically printed receipts, breaches are committed via an improperly programmed machine which can print thousands of these receipts. This means that hundreds or thousands of customers can be affected by FACTA violations at once.

Check your receipts regularly to make sure that no violations have taken place. Doing this will protect you from both FACTA violations and the potential of identity theft and fraud.

Consumers who have proof that a business did not comply with FACTA rules are allowed under law file FACTA lawsuits against the businesses who committed the violation, potentially collecting damages as well as attorney’s fees.

It is simple enough to prove company noncompliance in FACTA cases, because the proof of FACTA violation is found printed clearly on the bottom of receipts.

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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