FACTA Mandates Truncation on Credit and Debit Card Receipts

The Fair and Accurate Credit Transactions Act (FACTA) requires merchants to perform truncation on their credit and debit card receipts.

Truncation is the process of omitting or hiding certain information on printed credit and debit card receipts, to help prevent credit card fraud and identity theft.

Ever since FACTA was enacted in 2003, numerous consumers have come forward alleging companies and store merchants have failed to adhere to FACTA policy.

By Dec. 04, 2006, the federal government required all businesses operating cash registers or other receipt printing devices to practice the FACTA truncation policy.

Under FACTA, printed credit and debit card receipts must completely hide the all but the last five numbers of the card as well as the cards’ expiration date.

By hiding this information on the receipts, the process of identity theft and credit card fraud are more difficult to conduct as the vital pieces of information are concealed.

Even though FACTA has been in practice for many years now, businesses are still finding themselves in hot water over failing to confirm that truncation is properly executed.

In particular, recent court rulings highlight the importance of monitoring the retailers’ point of sale systems to confirm the credit and debit card receipts are FACTA compliant.

Overview of FACTA Policy

In one example, a Florida judge rejected luxury brand Jimmy Choo’s motion to dismiss a proposed FACTA class action lawsuit filed by a customer alleging FACTA violations.

The customer alleged the company had willfully violated the federal policy, and showed that her receipts showed her card’s expiration date.

Jimmy Choo representatives argued that the customer had no case, based on the fact that she suffered no actual damage.

The Florida court rejected Jimmy Choo’s argument, and found that the customer had suffered damages based on the fact that her personal financial information could have been potentially compromised.

In addition, the court found that the injury occurred as soon as the store failed to complete truncation on her receipt.

Similar decisions have been made in both California and Florida federal courts, which found that credit and debit card receipts showing more than the allowed information could be potentially harmful to consumers.

Businesses that fail to be FACTA compliant could face a $1,000 fine per violation, which can add up quickly to even substantial businesses like Jimmy Choo.

Legal experts recommend businesses check over their systems to confirm their cash registers are performing truncation on customers’ credit and debit card receipts, in order to avoid legal recourse.

Customers who find that their credit or debit card receipts do not meet federal regulations may be able to file a FACTA lawsuit, and should contact a specialized lawyer to determine eligibility.

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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