FACTA Improves Debit and Credit Card Receipt Security

There are certain federal laws in place to help protect consumers against fraud and identity theft, particularly in the sector of debit and credit receipt security.

One of the most well known policies in place for credit card receipt security is FACTA, the Fair and Accurate Credit Transactions Act, which requires companies to take certain precautions when they print  these slips of paper.

Under FACTA, businesses that print part of the card number on the receipt must truncate the number to insure that their debit and credit card receipt security is adequate. Truncation is the process of omitting or replacing the numbers of all but the last five digits on the card, while completely omitting the expiration date.

This means that FACTA mandates two main rules businesses must follow when producing electronically printed receipts:

• Businesses must not show any more than the last five digits on electronically printed debit or credit card receipts. The rule applies to businesses of any size, from local mom and pop shops to multibillion dollar businesses. While fewer than five digits may appear on the receipts, these digits must still fall within the last five numbers.
• Businesses must completely omit the debit or credit card’s expiration date, or take efforts to replace the numbers with symbols or dashes.

By concealing this information, consumers are less likely to be victimized by identity theft and credit card fraud. In addition, businesses automatically increase the efficiency of the customer’s debit and credit card receipt security when providing proof of purchase transaction.

An exception to this rule applies to handwritten receipts, receipts made from credit card imprints, and business records retained for businesses for accounting reasons.

Overview of FACTA Receipt Rules

FACTA was first enacted in 2003, but businesses were given until 2006 to update their receipt transaction processing software to adhere to federal standards. At the time, businesses with newer receipt transaction software were required to update their system to be updated in December 2004.

Currently, all businesses are expected to meet FACTA standards with their electronically printed receipts to maintain a sufficient level of credit card receipt security. Businesses that have not updated their receipt transactions programs could expose their customers to higher risk of identity theft and credit card fraud.

There are steps consumers can do to help further prevent identity theft and credit card fraud, by checking their receipts and declining receipts if they are not necessary. In the case of imprinted or handwritten receipts, consumers may want to pay in cash instead, because they otherwise cannot control what happens to their credit card information after the transaction.

Still, it is the overall responsibility of the business to insure that their debit and credit card receipt security standards are adequate and that their transaction software is FACTA compliant.

Businesses that are found to be in violation of FACTA could face serious statutory damages for failing to follow federal law. Depending on whether or not the claimant can prove willful violation, each receipt could potentially result in $100 to $1,000 in statutory damages.

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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