FACTA Rules that Retailers May Break

Though the Fair and Accurate Credit Transactions Act has been active since 2006, there are still several FACTA rules that retailers may break.

Here are the major ones to look out for so that you can help ensure your personal information is kept safe and protected from potential identity theft and fraud.

FACTA rules are designed to protect 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 fraudsters.

If truncation has not been done correctly — in a highly specific way — then FACTA has been violated.

FACTA Rules: Showing More than the Last Five Digits

Only the last five digits of a credit card or debit card number may be shown on a receipt. Receipts may not display any more than those five digits, even if they are five digits from elsewhere in the number.

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:

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

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

**** **** ***1 2345

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

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

FACTA Rules: Showing the Expiration Date

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.

FACTA Lawsuits

These are the major FACTA rules that merchants often break, and being aware of them will enable you to protect your own information and may even earn a substantial reward.

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.

Because FACTA violations are tied to electronically printed receipts, FACTA violations are 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.

Consumers who have proof that a business did not comply with FACTA rules are allowed under law file FACTA 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 and 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.

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