Federal Credit Card Laws Require FACTA Compliance

Federal credit card laws require merchants and companies utilizing electronic receipt software to truncate the card numbers that appear on debit and credit card receipts.

The process of truncation limits the amount of information presented on debit and credit card receipts. This is required under federal credit card laws to help lower the chances of identity theft and fraud.

The main provision of federal credit card laws consumers should be aware of is the Fair and Accurate Transactions Act (FACTA). FACTA is the specific policy that requires truncation of credit and debit card numbers among other requirements. More specifically, FACTA requires businesses hide all but the last five digits of the card number and completely omit the expiration date on debit and credit card receipts.

These vital pieces of consumer’s personal information could give easy access into their personal finances, making the card number and expiration date high priorities for thieves and fraudsters.

Overview of FACTA Compliance

FACTA was established in 2003 to help curb the rising problem of identity theft and credit card fraud. Affected businesses were given until 2006 to update their receipt transaction software to meet the standards of federal credit card laws.

Along with the process of truncation, FACTA also guarantees consumers the right to a free annual credit report from each of the three credit reporting companies in the United States.

FACTA applies to all businesses and merchants utilizing software that produces electronically printed debit and credit card receipts, including those produced at self service kiosks, cash registers, and restaurant tickets.

It is important to note that the truncation requirement does not apply to merchants using an imprinting system to record card information, or handwritten receipts. In these cases, consumers are advised to use cash for their purchases because they cannot control what happens to their card information after the transaction.

Even though FACTA and other federal credit card laws help prevent credit card fraud and identity theft, consumers should still take preventative measures to further lower the chances. For example, consumers can ask their bank or credit union to set up fraud alerts on their accounts to lookout for any unusual transactions. Closely monitoring their bank accounts and transactions to look for any suspicious purchases, especially transactions made out of state or in another country, is also recommended.

In addition, consumers are advised not to opt for receipts if they do not need them or to dispose of them in a safe manner once they become obsolete. The first thing consumers should do before disposing of the receipt, is to check if it is FACTA compliant and that the merchant removed all but the last five digits of their credit or debit card number as well as the expiration date.

If not, customers should report the problem to the company immediately as it could be a system wide software error and numerous other customers could be affected. Additionally, if the business has not updated their receipt software to meet FACTA standards, the consumer could choose to take legal action.

Businesses found to be in violation of FACTA could face fines between $100 to $1,000 per violation, depending on whether or not willful violation can be proven. Consumers looking to file a FACTA lawsuit should keep the defective receipts in question to help illustrate the alleged violations against federal credit card laws.

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.

Get Started