Why Being Aware Of FACTA Rules Is Important

Not only can being aware of FACTA rules and violations keep companies in line and protect consumers from identity theft and fraud, but it could also lead to compensation for the consumer.

The Fair and Accurate Credit Transaction Act (FACTA), enacted by the Federal Trade Commission (FTC) in 2006, includes a number of rules intended to protect consumers from the kind of problems that go along with losing valuable credit card information.

Violations are simple – from printing the wrong numbers of a consumer’s credit card to including a card’s expiration date, breaking FACTA rules may seem like not much of a problem.

However, identity theft associated to credit card information is on the rise, and FACTA rules were made to protect that information. FACTA violations, therefore, are a big deal, and customers that catch these violations – even if they catch them before any problems occur – can be eligible to gain compensation.

All businesses should make sure that their electronic equipment prints credit and debit card receipts according to FACTA standards, but consumers should also be aware of the rules so that they can ensure the safety of their own information.

FACTA Rules

Printed credit or debit card receipts often include some of a consumer’s account information, which is allowed. However, only certain portions of the information can are acceptable for print on the receipts. According to FACTA rules, electronically printed debit or credit card receipts must disclose information in a very specific matter.

FACTA requires credit card information to be truncated, or shortened, so that it cannot reveal too much and place a customer in danger of fraud. Some retailers, whose equipment may be out of date or may be unaware of FACTA rules, may not truncate the information correctly.

According to FACTA rules, no more than the last five digits of a customer’s card number can appear on the receipt. This means two things – firstly, printing any more than five digits of a card number is disallowed. Secondly, the digits printed on the receipt cannot be located anywhere other than the last five digits.

For instance, Example 1 shows fewer than five digits, but the digit is not taken from the last five spaces. Example 2 reveals more than five digits.

Example 1: 1*** **** **** ****

Example 2: **** **** **11 1111

Many companies ensure that they follow FACTA rules by only showing the last four digits of a credit or debit card number, and using asterisks or some other symbol to censor the rest of the information.

FACTA rules also state that no part of the card’s expiration date may be included. Unlike with the credit or debit card number, if any portion of the expiration date is printed on a customer’s receipt, is also a FACTA violation, even if some part of the date is concealed.

FACTA Violations and Consequences

Credit card information on electronically printed receipts allows people who get ahold of this information an easier ability to commit both fraud and identity theft. Businesses who wish their customers to be happy and protected will comply with FACTA rules in order to protect their customers.

Alongside the importance of protecting customers, businesses can also be heavily penalized for FACTA noncompliance, including civil penalties and injunctive relief. The law allows consumers to sue businesses that do not comply with FACTA rules.

This law only applies to electronically printed receipts, and excludes handwritten or imprinted receipts.

Consumers who have proof that a business did not comply with FACTA rules can file FACTA lawsuits against the businesses who committed the violation, 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.

Check your debit or credit card receipts regularly to make sure that no FACTA violations have taken place. Doing this can protect you from identity theft and fraud. Consumers have the right under FACTA rules to file a lawsuit for these simple violations, because they can put consumers in danger.

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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