Complying with Receipt Laws Made Mandatory for Businesses Through FACTA

When a retailer or business prints more than the last five digits of a debt or credit card number or any part of the card’s expiration date on a receipt, the consumer’s rights may have been violated and they may be eligible for compensation.

Complying with receipt laws is a requirement made mandatory for businesses and retailers through the Fair and Accurate Credit Transactions Act (FACTA), passed by Congress in December 2003.

Complying with Receipt Laws

FACTA protects consumers against fraud and identity theft. Without complying with receipt laws, businesses may make it much more likely for identity theft to occur and for criminals to fraudulently access people’s accounts.

To ensure they’re complying with receipt laws, businesses must allow no more than the last five digits of a consumer’s debit card or credit card to be printed on a sales receipts, and they must not allow any portion of a consumer’s expiration date to be printed.

Thus, if a sales receipt ever makes its way to a criminal or thief, they couldn’t use those numbers to make any purchases or any other fraudulent charges on a consumer’s credit account.

Businesses complying with receipt laws are mandated to follow those laws not only with a consumer’s credit card but with debit cards as well.

When FACTA was first passed, businesses were given a grace period in which to meet the new requirements. Most businesses, in order to follow FACTA regulations, did not have the equipment required to prevent expiration dates from showing on printed sales receipts and to truncate credit and debit card numbers.

Thus, requirements to meet the new law for business and retailers became effective in phases. Business with older cash registers and point-of-sale systems had until December 2006 to begin complying with receipt laws in FACTA. Businesses with newer point-of-sale systems and cash registers had until December 2004 to begin complying with receipt laws.

Not only does FACTA apply to traditional brick and mortar business but online business as well. Online businesses must ensure that card expiration dates do not show on receipts, and they must truncate debit and credit card numbers as well.

Dangers of Non-Compliance

By not complying with receipt laws, businesses can find themselves in legal trouble, and they may be in willful violation of FACTA. Businesses that decide to keep cheaper and older point-of-sale systems and cash registers can be faced with legal action from consumers whose sensitive card information is exposed on noncompliant receipts.

Failure of a businesses to comply with receipt laws can lead to statutory damage awards of up to $100 to $1,000 per violation. The risk of losing trusted customers is also a danger to businesses facing non-compliance charges.

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.

Get Started