Law Requires Merchants to Truncate Credit/Debit Card Receipts

Identity theft is a significant, and growing, worldwide problem. All businesses, large and small, that issue electronically generated credit and debit cards receipts to consumers at the point of transaction are subject to the “truncation” requirement of the Fair and Accurate Credit Transactions Act of 2003 (FACTA) in order to protect consumers from identity thieves.

What is FACTA?

On December 4, 2003, President Bush signed the Fair and Accurate Credit Transactions Act of 2003 (FACTA). The stated purpose of FACTA is to provide consumers, companies, consumer reporting agencies and regulators with important new tools to expand access to credit and other financial services and to enhance the accuracy of the consumers’ financial information while helping to fight identify theft. The main provisions of the FACTA act center on combating identity fraud and protecting consumer privacy.

What is the Merchant’s Responsibility?

One of the main aspects of the FACTA act requires that merchants leave off all but the last five digits of credit card numbers and leave off the card expiration date from debit and credit card receipts.

Under the statute, merchants are responsible for truncating the only credit and debit cards number and expiration date on customer copies of electronically generated debit and credit card receipts so that no more than the last five digits of the credit and debit cards number are visible. However, it is important to note this does not apply for the merchant copy of a credit card or debit card receipt.

Additionally, the customers credit or debt card receipt’s expiration date must be removed in its entirety. The statute 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 or the expiration date upon any receipt provided to the cardholder at the point of sale or transaction.”

While Congress passed FACTA in December 2003, it has been phased in gradually, requiring merchants with newer electronic card processing machines to comply by December 2004. Merchants with older machines were given until December 1, 2006. So now all companies that electronically print credit or debit card receipts must truncate the information on the credit or debit cards receipt copy they give their customers.

FACTA Violations

FACTA violations can be costly. If they are found to be “willful,” merchants are exposed to liability of between $100 and $1,000 per violation, plus attorney fees and costs. Since a FACTA violation occurs each time a non-compliant receipt is issued—and many merchants issue dozens, if not hundreds, of debit and credit card receipts per day—potential liability can reach many millions of dollars for retailers found to have “willfully” violated FACTA rules.

If you were provided an electronically printed credit or debit card receipt at the point of sale or transaction on which the expiration date or number of your credit or debit card was printed, you may be eligible to file 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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