FACTA Laws Protect Consumers’ Credit Card Receipt Information

Federal rules in place help protect both card receipt and debit card receipt information. Knowing these rules will help keep your information safe and may even result in monetary awards.

The Fair and Accurate Credit Transactions Act, also known as FACTA, was first passed in 2003. It was created with the intent of protecting consumers’ credit card receipt and debit card receipt information from potential fraudsters and theft.

Recognizing FACTA violations early on can help stop this kind of problem before it can affect you and, potentially, thousands of other customers.

FACTA Violations and Rules

FACTA protects our credit card receipt and debit card receipt information by a process called truncation. Truncation is, essentially, the shortening of a consumer’s information on a debit card receipt or credit card receipt in order to limit the information available to identity thieves or those looking to commit credit card fraud.

Truncation, which cuts most of the credit card and debit card information off of a receipt, must be done in a highly specific way in order to properly comply with FACTA rules.

Only the last five digits of a credit card or debit card number may be shown on a receipt. Receipts that display any more than five digits violates federal law, and receipts that show digits from anywhere other than the last five spaces are not allowed.

Many businesses choose to ensure that this FACTA rule is followed by showing only the last four digits — just to be safe. The other digits are censored, often with symbols such as an asterisk.

Credit card receipts and debit card receipts, when following FACTA rules properly, should look like this:

**** **** **** 1984

However, because five digits are allowed, it may also look like this:

**** **** ***2 4601

Receipts may not show numbers from elsewhere in the number. Therefore, this is not allowed:

1234 **** **** ****

On top of the card number truncation, FACTA rules also require that the card’s expiration date be concealed completely.

Because credit card receipts are printed electronically, by machine — hand-written receipts are exempt from these FACTA rules — businesses need only make sure that their machines are up-to-date and set to comply with FACTA regulations.

Credit Card Lawsuits

FACTA awards statutory damages of up to $1,000 per violation — whether or not the consumer actually suffered any real or substantial injury, such as identity theft. The violation itself is penalized.

Businesses of all kinds, from very small companies to massive ones, have been targeted in FACTA lawsuits.

Because FACTA violations are tied to electronically printed receipts, violations of the act can be committed via an improperly programmed machine which can print thousands of these receipts. This means that hundreds or thousands of customers can be affected by FACTA violations at once.

In a FACTA class action lawsuit where these violations are uncovered, a business may be required to award plaintiffs statutory damages of millions of dollars in total, as well as whatever punitive damages the court deems necessary.

Given that each violation can result in a substantial fine, class action lawsuits can result in damaging or even crippling consequences for businesses.

Indeed, some FACTA class action lawsuits against major retailers have reportedly reached billions of dollars in damage claims.

FACTA Class Action Lawsuits

Consumers who have proof that a business did not comply with FACTA rules are allowed under law file FACTA class action 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 receipts regularly to make sure that no FACTA violations have taken place. Doing this will protect you from both FACTA violations as well as 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.

Get Started