Credit Card Safety Gets a Boost from Federal Privacy Laws

With how widespread and common debit and credit card transactions are in the digital age, credit card safety is more important than ever.

There are a number of precautions consumers can take to increase their personal credit card safety, but they should also know that businesses are required by law to make their shopping environment safer from identity thieves and fraudsters.

One law enacted to promote credit card safety is the Fair and Accurate Credit Transactions Act (FACTA), which mandates that businesses take care of consumers’ credit card information.

Under FACTA, businesses must have receipt printing programs that hide or replace all but the last five digits of the consumer’s debit and credit card number, along with completely omitting the expiration date.

By concealing these pieces of information, merchants can reduce the chance that a customer’s credit card information will be used for fraud. FACTA was originally enacted by Congress in 2003, in an effort to combat the growing problem of identity theft and credit card fraud. Businesses were given until 2006 to update their receipt printing technology, so their transaction software could meet federal regulations.

Overview of FACTA and Credit Card Safety

FACTA policy primarily affects electronically printed receipts produced form cash registers, self service kiosks, and restaurant tickets. In addition to increasing debit and credit card safety for consumers, FACTA also guarantees consumers the right to a free annual credit report from each of three major credit reporting industries in the country: Equifax, Experian, and TransUnion.

Consumers can sign up for these credit reports to look for any suspicious charges or other odd spending behaviors, so they can issue a fraud alert. Consumers can also do sign up for fraud alerts with their banks and credit unions, so they can be alerted to similar occurrences with their credit cards.

It is important to note that FACTA does not apply to handwritten or imprinted receipts, which is when credit card safety may be more vulnerable. This is because consumers cannot control what happens to their card information after the transaction, and are advised to use cash for these purchases.

Additional steps consumers can take to increase their debit and credit card security include:

• Carry credit and debit cards separately to decrease risk factors in case someone steals wallet
• Contact bank or credit union to notify them of upcoming travel
• Monitor transactions online or through statements
• Destroy all paper receipts after they no longer have a use
• Use cash if a debit or credit card is not needed
• Do not give debit or credit card information to any untrustworthy parties
• Do not give account numbers over the phone
• Report any lost or stolen cards to credit card company

Even with these steps, consumers may still face some risk of identity theft and credit card fraud. This is why it is important for businesses to make sure their receipts are FACTA compliant, and why they can face serious legal consequences if they fail to do so.

Consumers who notice their receipts contain too many card numbers or the expiration date may be eligible to file a FACTA lawsuit. Affected consumers may be able to seek $100 to $1,000 in statutory damages for each violation.

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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