The Importance of FACTA Truncation

Businesses and customers rely on the policies set by the federal Fair and Accurate Credit Transactions Act (FACTA), to help lower the chances of credit card fraud and identity theft.

Under FACTA truncation rules, merchants must conceal vital personal information that can be revealed on debit and credit cards so to help deviate the constant problem of identity theft and credit card fraud.

FACTA truncation is the process of concealing or omitting certain numbers and information on debit or credit card receipts, which are produced after the point of purchase.

It is important to note that these receipts not only serve as financial records, but can also be used by fraudsters to access the consumer’s financial accounts. The full debit or credit numbers, along with the expiration date, are key pieces of identification fraudsters use to gain access to the consumer’s finances.

Therefore, under FACTA truncation, all but the last five digits of the debit or credit card numbers must be hidden on the receipts with the expiration date completely omitted.

It is important to note, however, that handwritten receipts or recorded card imprints are not subject to FACTA regulations. FACTA truncation applies to all debit and credit card receipts electronically printed by cash registers from stores, kiosks, and even restaurant tickets.

Overview of FACTA Policy Importance

When FACTA was first established in 2003, this policy was thought to greatly impact the rising problem of credit card fraud and identity theft.

Companies were given three years to update their receipt processing software to perform FACTA truncation. This made them compliant with federal regulations, which helped protect them from liability charges in the case of one of their consumers being targeted.

In addition to the layer of protection against indemnity theft and credit card fraud, FACTA also allows consumers to obtain an annual free credit report from each of the major consumer credit reporting companies: Equifax, Experian, and TransUnion.

Moreover, FACTA policy mandates that companies must place a fraud alert on the consumer’s file for at least 90 days and must notify other consumers who may be at risk for fraud. Merchants who are found to not be in FACTA compliance can face substantial financial damages and even litigation if their software is not corrected.

FACTA tuncation violations can be up to $1,000 per receipt, which can quickly added up for any large and small businesses. Consumers who discover that their receipts are not FACTA compliant are encouraged to report it to the store, and seek legal consultation if the company does not act.

Consumers should keep all their receipts for reference, and should contact a specialized lawyer to determine eligibility for a FACTA lawsuit.

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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