Consumers Gain Credit Fraud Protection from Federal Law

Many individuals aren’t aware that some receipts they get from retail establishments can put them at risk for credit fraud.

The Fair and Accurate Credit Transactions Act, or FACTA, is a law put into place to protect Americans from the risk of credit fraud and identity theft. Parts of FACTA refer to regulations regarding the ways that retail establishments can print credit card and debit card receipts.

FACTA was passed in 2003 to meet growing reports and concerns that Americans were falling victim to credit fraud and identity theft. It restricts the amount of information that can be included on an electronically printed receipt.

Essentially, when an individual pays a transaction, only certain pieces of information can be included on a receipt that he or she gets if they use a credit or debit card.

Under FACTA, a business may not print the expiration date of the credit card or debit card. Additionally, the business may only print out the last five digits of a debit or credit card and no more than that. In fact, some businesses who comply with FACTA only print out the last four digits of their customers’ cards.

If a business or retail store violates FACTA, an individual can be at risk for credit fraud or even identity theft. While some thieves steal credit and debit card numbers online, some credit fraud and theft occurs if a thief takes possession of a physical receipt that has financially vulnerable information printed on it.

If multiple digits of a credit or debit card or the expiration date of the card gets into the wrong hands, the owner of that card can be vulnerable to credit fraud and identity theft.

FACTA Law

FACTA violations are punishable by law and retailers who violate this act can be subject to hefty penalties. These laws apply to all electronically printed receipts including those printed at cash registers, at restaurants and at any electronic receipt-printing machine.

Because the law states that a receipt may not contain any more than the last five digits of the card number, even if there are less than five digits but those digits appear elsewhere in the number sequence, the retailer has violated FACTA.

FACTA explicitly states “no person that accepts credit cards or debit cards for the transaction of business shall print more than the last 5 digits of the card number or the expiration date upon any receipt provided to the cardholder at the point of the sale or transaction.”

When a retailer complies with FACTA, they engage in a process called truncation. A receipt whose credit or debit card numbers have been truncated shows different characters in the place of the removed numbers. For example, a “*” or a “#” may appear in the place of the other digits that must be removed by law.

Even if your identity was not taken nor were you the victim of consumer fraud, if you suspect a retailer has violated FACTA and unlawfully printed digits on your receipt, you may be eligible for legal action and may benefit from speaking to an experienced attorney about your legal options.

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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