FACTA Violations Put Consumers in Danger of Fraud

The Federal Trade Commission (FTC) advises all businesses to check that their electronically printed receipts comply with a federal law known as the Fair and Accurate Credit Transaction Act (FACTA), in regards to the consumer credit and debit card information that can and cannot be printed.

What is FACTA?

The FTC enacted the Fair and Accurate Credit Transaction Act (FACTA) in 2006.  According to FACTA, electronically printed receipts must shorten the account information in a very specific manner.

The process of masking customer’s card information is called truncation – a word that means shortening the number, or cutting it off before it reveals too much and places a customer in danger of fraud. Truncation is not always done properly by retailers, who may have out-of-date machines, or may not understand the rules of the FACTA Act.

Examples of FACTA Violations

No more than the last five digits of a card number can be shown. This means two things – firstly, any more than five digits of a card number is prohibited. Secondly, any digits located anywhere other than the last five spaces cannot be included.

For instance, Example 1 as shown below does not comply with FACTA rules because even though only one digit is shown, that digit is taken from somewhere other than the last five spaces. Example 2 as shown below violates FACTA rules because more than five digits are shown.

Example 1: 1*** **** **** ****

Example 2: **** **** **11 1111

Fewer than five digits may be shown if they are all located within the last five digits of the number. Many companies ensure that they follow FACTA rules by only showing the last four digits of a credit or debit card number, and using asterisks or some other symbol to censor the rest of the information.

FACTA rules also state that no part of the card’s expiration date may be included. Unlike with the credit or debit card number, if any portion of the expiration date is printed on a customer’s receipt, is also a FACTA violation, even if some part of the date is concealed.

Why Is Following FACTA Rules Important?

Credit card information on electronically printed receipts allow people who get a hold of this information an easier ability to commit both fraud and identity theft. Businesses who wish their customers to be happy and protected will comply with rules in order to protect their customers.

Alongside the importance of protecting customers, businesses can also be heavily penalized for FACTA noncompliance, including civil penalties and injunctive relief. The law allows consumers to sue businesses that do not comply with FACTA rules.

This law only applies to electronically printed receipts, and excludes handwritten or imprinted receipts.

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.

Merchants who print non-FACTA compliant debit or credit card receipts could be subject to enormous statutory damages for putting individuals at risk for identity theft.

If you have made one or more purchases where the retailer provided you with a debit or credit card receipt that contained more than the last five digits of your credit or debit card number or the expiration date, you may be eligible to pursue legal compensation for these FACTA violations.

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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