Using FACTA to Protect Credit and Debit Card Receipts

Consumers commonly receive credit and debit card receipts after a transaction to prove proof of purchase. Even though these small slips of paper seem insignificant, credit and debit card receipts could contain significant pieces of sensitive personal information that could compromise the financial security of the consumer.

For this reason, the federal government established a set of rules for merchants to follow when producing credit and debit card receipts. More specifically, the Fair Accurate Transactions Act (FACTA) requires companies or any other merchants that used receipt printing software to truncate the card number on credit and debit card receipts.

Under FACTA, companies must limit the number of digits shown on credit and debit card receipts, while completely omitting the card’s expiration date. Only the last five digits of the card number should be present on credit and debit card receipts, along with basic information regarding the transaction including date, purchase amount, itemized list of items bought and tax fees.

The personal information of the consumer is used as sparingly as possible, to help lower the chances of identity theft and credit card fraud.

Overview of FACTA Policy and Importance

FACTA was established in 2003 to help consumers combat the growing problem of credit card fraud and identity theft. This federal policy was designed to limit the amount of personal information shown on credit and debit card receipts which would help deter fraudsters and thieves.

When FACTA was first established, the federal government gave businesses and merchants until 2006 to update their transaction software to meet federal standards. In addition to receipt safety, FACTA also guarantees consumers the right to a free annual credit check from each of the three major credit checking companies in the United States.

Even with the help of FACTA, consumers must be constantly vigilant for any signs of fraud or identity theft in their bank accounts. Consumers can do this by setting up a fraud alert with their bank or credit union and frequently checking their accounts for any strange transactions.

In addition to these precautions, consumers should also educate themselves about what information their credit and debit card receipts should contain and what information should not be.

For example, consumers are not required to accept receipts after purchase and can ask for a merchant to dispose of them. Receipts are secure and reliable methods of financial record keeping, but they are not foolproof and are not always required.

In addition, consumers may prefer to pay in cash if they are purchasing an item from a merchant who is using imprinting to record card information or are just handwriting receipts. FACTA’s truncation requirement does not apply in these cases, so consumers are better off using cash in these cases to avoid generating a receipt with their card number on it.

If a consumer discovers their credit and debit card receipts are not FACTA compliant, they may be able to file a civil FACTA lawsuit. Businesses are found to be in violation of FACTA could face up to $1,000 per faulty receipt.

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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