Improper Debit/Credit Card Receipts Lead Customers to File Lawsuits

It is easier than ever before to use a debit or credit card to make purchases virtually anywhere. However, many consumers are unaware that retailers have to follow strict guidelines when issuing debit or credit card receipts. According to the Fair and Accurate Credit Transaction Act (FACTA), businesses must shorten the card number to the last five digits or less and completely eliminate the card’s expiration date from the receipt.

If companies are found in violation of FACTA they are subject to serious fines and possible FACTA lawsuits.

FACTA Violations Explained

Congress passed the Fair and Accurate Credit Transaction Act in 2003 as a way to help customers avoid the risk of identity theft. The FACTA rules apply to all receipts printed by a cash register including restaurants, retailers, and even self-service kiosks.

Identity theft is a serious problem that affects millions of Americans each year. There are many ways for thieves to get personal information about an individual, but perhaps one of the simplest ways is to look at a credit or debit receipt. Identity thieves can piece together your full debit or credit card number if it isn’t protected well enough. 

For that reason, federal law states that “no person that accepts credit cards or debit cards for the transaction of business shall print more than the last 5 digits of the card number.”

Retailers and other companies choose to hide or mask the numbers in a variety of ways including using symbols like # 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: 23** **** **** 4444

Example 2: **** **11 **** 5555

Example 3: **** **** **99 ****

As shown by these examples, a FACTA violation even occurs if less than five digits are present on a receipt if 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 businesses that accept card payments should not print the expiration date “upon any receipt provided to the cardholder at the point of the sale or transaction.”

FACTA Lawsuits and Settlements

Customers who discover a credit or debit receipt that shows more than the last five digits or contains an expiration date may have legal claim. If businesses are found guilty of FACTA violations, they may be required to financially compensate their customers. The violation fees vary in the amount, but typically range from $100 to $1,000 per violation.

Plaintiffs can file an FACTA lawsuit as an individual or join a FACTA class action lawsuit against a company.

Some FACTA settlements in recent years include: Southwest Airlines, which settled a FACTA class action lawsuit for $1.1 million in 2013; Toys R Us, resulting in store vouchers for all Class Members; and Airgas USA LLC, a specialty gas and hardwood distributor, which settled a FACTA class action lawsuit that resulted in $30 for each Class Member.

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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