FACTA Protects Credit Card Users From Identity Theft

Identity theft affects millions of U.S. residents each year. There are many ways for these thieves to obtain personal information about you, but one of the simplest is to look at a credit or debit card receipt.

Identity thieves can piece together your full debit or credit card number if it isn’t protected well enough.

In order to help Americans avoid the risk of identity theft, Congress passed the Fair and Accurate Credit Transaction Act (FACTA). FACTA requires that all receipts printed by a cash register including restaurants, retailers and even self-service kiosks, shorten the card number to the last five digits. According to FACTA, the expiration date of a card should not be printed on a receipt.

FACTA Overview

Enacted in 2003, FACTA was passed in order to help credit and debit consumers limit the amount of information that is shared with the companies they do business with.

In addition to truncating numbers listed on a receipt, FACTA also requires businesses that collect personal information such as Social Security numbers or credit/debit card numbers, to destroy the information when they are done using it. 

FACTA further allows U.S. citizens to receive a free credit report annually so they can make sure their credit report is accurate and no fraudulent transactions have occurred.

If Americans end up victims of identity theft, FACTA also gives them the right to obtain the information from the business where the fraudulent activity took place. For example, if a loan company takes an application from an individual claiming to be you, that company would have to give you a copy of the application.

FACTA Violations Explained

Businesses that make sure they are complying with FACTA will choose to mask credit or debit card numbers by using symbols such as # or * in place of actual digits. A FACTA violation of the “last five digits” or less printed on a receipt could look like the following:

Example 1: 34** **** **** 5555

Example 2: **** **22 **** 4444

Example 3: **** **** **88 ****

As shown by this example, a FACTA violation has occurred even if less than five digits are present on a receipt as long as they are NOT the last digits of the card.

Another FACTA violation occurs when credit or debit receipts display the expiration date of the card. The government requires that any business that accepts card payments should not print the expiration date “upon any receipt provided to the cardholder at the point of the sale or transaction.”

An example of an FACTA expiration violation would be if a customer saw any of the following on a credit or debit receipt:

EXP: 06/19

EXP: 06/2019

EXP: 0619

EXP: 062019

FACTA Lawsuits

Credit or debit card consumers who find that a receipt shows more than the last five digits or it contains an expiration date, may have a legal claim.

Businesses found guilty of FACTA violations may be required to compensate their customers. The violation fees vary, but typically are $100 to $1,000 per violation.

Contact a FACTA attorney to find out if you’re eligible for a FACTA lawsuit and whether it would be better to file as an individual or join a FACTA class action lawsuit.

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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