Federal Laws On Credit and Debit Card Receipts Protect Your Privacy

A law passed in 2003 is responsible for protecting the privacy of consumers when it comes to the information that can appear on credit and debit card receipts.

Known as FACTA, the Fair and Accurate Credit Transactions Act is an amendment to the Fair Credit Reporting Act. FACTA allows consumers to receive a credit report from each of the three nationwide credit companies, Equifax, Trans Union and Experian, for free each year.

Additionally, under FACTA, consumer privacy is protected in terms of the information that is allowed to be printed on credit and debit card receipts.

Businesses that electronically print credit card and debit card receipts to hand to consumers must follow truncation requirements under the law. Businesses were expected to fully comply with the law in December 2006 after a few years of having time to phase in equipment to meet truncation requirements.

Under the truncation requirements, credit and debit card receipts may not include more than the last five numbers of the credit or debit card account number and may not include any part of the credit card or debit card expiration date.

Prior to having requirements for truncation, the consumer’s full credit card or debit card number along with the expiration date could be printed on those receipts. This was a prime target for identity thieves who could take that information and charge the card up to the max or drain a consumer’s checking account.

Also, with having that the account number information in hand, skilled thieves could hack into the identity of individuals and open additional credit cards and more.

What Happens If a Business Does Not Truncate Information on Credit and Debit Card Receipts?

Businesses can face serious penalties for failing to truncate information on credit and debit card receipts. This requirement applies to all electronically printed receipts handed to the customer.

This does not apply to handwritten receipts or receipts that are imprinted with credit card information. Also, business copies of receipts also do not have to meet truncation requirements.

Violations of credit and debit card receipt truncation can lead to law enforcement by the FTC in addition to consumer lawsuits. The penalty for violating FACTA is an award of statutory damages between $100 and $1000 per violation. Willful violations receive a greater award. Attorneys’ fees and additional damages may also be awarded to successful plaintiffs.

When a class action lawsuit alleges violations of FACTA, the amount of damages a business may be required to pay could be substantial and reach into the millions or billions of dollars.

The most common reason for current FACTA violations on credit and debit card receipts is when businesses update their payment processing systems and neglect to correctly program them to meet truncation requirements. Depending on how long the error persists, thousands to millions of transactions can take place.

Filing a Lawsuit over Noncompliant Credit and Debit Card Receipts

If you have received a receipt that includes more than the last five digits of your credit or debit card account number or if it includes any part of the expiration date, you may be entitled to legal compensation. An experienced FACTA can provide you with a complimentary case review to help you understand your eligibility and options related to pursuing legal action.

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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