FACTA Rules Help Ensure Credit Card Receipt Safety

The Fair and Accurate Credit Transaction Act of 2003 (FACTA) ensures credit card receipt safety. When you purchase something at a business and the cashier supplies you with an electronically generated receipt, only certain information can appear by law.

FACTA was introduced to reduce the risk of identity theft and credit card and debit card fraud. As an amendment to the Fair Credit Reporting Act, FACTA stipulates that the credit or debit card numbers on a receipt must be truncated, meaning all of the digits should not appear on the printed receipt.

FACTA dictates that only the last five digits of the credit card number may appear on an electronically generated receipt, and the card’s expiration date must not appear.

FACTA rules don’t apply to handwritten receipts or receipts created with the old-fashioned imprint machine that requires a carbon imprint of the card information to be created by running a handpress over the actual plastic card.

All Businesses Are Responsible for Credit Card Receipt Safety

Both large and small businesses are required to comply with FACTA receipt rules in order to ensure credit card receipt safety.

Businesses that do not comply with FACTA receipt rules can face law enforcement action by the FTC. Both civil penalties and injunctive relief have been applied in various cases. (Injunctive relief means the court orders the defendant to cease a specified act rather than ordering the defendant to make a monetary payment.)

A consumer who finds a merchant has “willfully” not complied with FACTA during a purchase can file a lawsuit if more than five digits of a credit card number and/or the expiration date appear on the receipt.

Businesses found liable can pay anywhere from $100 to $1,000, or the monetary loss the infraction caused.

A merchant is more apt to be found he has “willfully” violated FACTA receipt laws if the retailer “knew or should have known” of FACTA’s regulations and was made aware of the statute’s requirements. In many cases, proof that information regarding FACTA was mailed or electronically sent to a business alerting the business managers suffices.

Despite the fact that FACTA has been in place for 14 years, consumers cannot assume all merchants are compliant. Some retailers might believe their credit card equipment companies are ensuring lawful compliance, but they aren’t.

Protecting Your Identity

When you shop, always check your receipts. By law, receipts can include the following:

1. Merchant’s DBA (Doing Business As) name and address
2. Date of transaction
3. Brief identifying information of the products or services purchased, including the prices and applicable taxes
4. The cardholder’s signature on only the merchant’s copy, unless a PIN number was used
5. Authorization approval code obtained from the card issuer
6. Up to the last five digits of the credit card account number if done electronically

Even large retailers where you shop all the time can inadvertently fall out of compliance after the equipment has undergone a software update.

FACTA also requires the three major credit-reporting agencies provide consumers with a credit report free of charge.

If you suspect you have become a fraud victim, you can place an alert on your files to prevent subsequent infringements.

If you believe a retailer has placed you at risk by violating FACTA laws and not ensuring your credit card receipt safety, you could have a legal claim and could benefit by speaking with a lawyer.

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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