Retailers Share Responsibility for Credit Card Security Under FACTA

Credit card security has changed over the years due to technological advances and new laws.

Anytime you purchase an item at a store using a credit or debit card, the receipt should reveal no more than the last five digits of the card number. The expiration date should appear anywhere on the receipt.

According to the Federal Trade Commission’s Bureau of Consumer Protection, “Credit card numbers on sales receipts area a ‘golden ticket’ for fraudsters and identity thieves.”

Knowing this, the Fair and Accurate Credit Transactions Act (FACTA) became law in 2003 to protect consumers who need to make identifiable purchases, but also hinder identity thieves.

According to FACTA, credit card security is enhanced when the following information is included on a receipt:

1. Merchant’s DBA (Doing Business As) name and address
2. Date of transaction
3. Products or services purchased, including prices of individual items and applicable taxes
4. The cardholder’s signature on only the merchant’s copy, unless a PIN number was used
5. Authorization approval code from the card issuer
6. Up to the last five digits of the credit card account number if done electronically. (This does not mean a combination of any five digits of the card number; it means ONLY the last five digits can be printed on the receipt.)

Merchants Are Responsible for Credit Card Security

FACTA laws apply to anywhere you receive a computer-generated receipt. Some small boutique shops still might use the old machines that allow a press to imprint the card number on a carbon paper. Those receipts, and any handwritten receipts, are the only ones that are exempt from FACTA rules.

Consumers who determine their credit card security has been violated can file a FACTA lawsuit against the offending retailers. Any business that does not comply with FACTA rules can incur penalties handed out by the Federal Trade Commission. Consumers also have successfully collected damages and attorney’s fees.

Retailers have had to pay civil penalties and injunctive relief, which means the retailer has to stop a specified offense. Any business that has “willfully” committed FACTA violations during a sale can be sued. Retailers who are determined to be liable are apt to pay $100 to $1,000, or the actual monetary amount the infraction caused.

A court is more likely to find a merchant has “willfully” violated FACTA credit card security requirements if the retailer “knew or should have known” of FACTA’s regulations.

Over the years, FACTA was announced through written communication to all retailers many times.

Retailers might place trust their credit card equipment companies to keep their systems up to date. Smaller merchants are more apt to assume their machines comply with the newest laws, even though they might be lacking the necessary credit card security measures. FACTA has been in place for more than a decade, but consumers need to stay alert and check every receipt.

If you have received a receipt that does not meet the new credit card security requirements, you could be eligible for compensation due to the retailer’s 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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