Retailers Need to Abide FACTA to Ensure Identity Theft Protection

Identity theft prevention is the main goal of FACTA, the Fair and Accurate Credit Transactions Act enacted in 2003.

The law intends to reveal enough identifying information on receipts for both the retailer and consumer to recognize the transaction, but not enough information that would lead to identity theft if the receipt fell into the wrong hands.

It is best to always check your receipts to make sure vendors follow the laws designed to protect you.

When you make a purchase at a store using your debit or credit card, no more than the last five numbers of the card should appear on your receipt. The receipt should never contain the expiration date, and it should display no more than the last five digits of the card number. Identity theft prevention is attainable when these rules are followed.

The Federal Trade Commission’s Bureau of Consumer Protection says “credit card number on sales receipts are a ‘golden ticket’ for fraudsters and identity thieves.” Identity thieves have been known to go dumpster-diving to find receipts that contain enough information that allows them to steal a person’s identity.

FACTA class action cases have been successful in holding merchants accountable when they violate FACTA, which is a federal statute. Every time a non-compliant receipt is issued, it is a violation of federal law.

Receipt Requirements Boost Identity Theft Protection Efforts

Credit card receipts should always include:

1. Merchant’s DBA (Doing Business As) name and address
2. Date of transaction
3. Products or services purchased, including the prices and applicable taxes
4. The cardholder’s signature on only the merchant’s copy, unless a PIN number was used
5. Authorization approval code from the card issuer
6. Up to the last five digits of the credit card account number if done electronically

Some small shops that continue to use handwritten or carbon-copy imprinted receipts are exempt from these requirements. Also, merchants are allowed to keep more details of a transaction for their records, but that information must be securely stored.

Both small and large businesses need to take identity theft prevention seriously. Any business that does not comply with FACTA rules can incur penalties handed out by the Federal Trade Commission. Consumers also have successfully sued and collected damages and attorney’s fees.

Both civil penalties and injunctive relief have been applied in various cases. (Injunctive relief is when the court orders the defendant to stop a specified act.) A consumer who finds a merchant has “willfully” not complied with FACTA during a purchase can file a lawsuit. Merchants found liable could pay anywhere from $100 to $1000, or the actual monetary loss the infraction caused.

Retailers might think their credit card equipment companies have taken care of identity theft prevention. That’s not always the case, meaning some retailers could be unaware they are non-compliant.

If you have been handed a receipt that does not ensure identity theft protection, you could be eligible for compensation.

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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