FACTA Violations Could Be Lurking in Debit Card Receipts

The Fair and Accurate Credit Transactions Act, also known as FACTA, is designed to protect consumers from information and identify theft in an age of evolving technology. Many of its regulations relate to the protection of debit and credit card information, which is a common piece of information stolen.

If debit card receipts share too much information, the consumer who receives the receipt may be in a position to file a civil FACTA lawsuit. 

Under FACTA regulations, merchants are not allowed to print more than the last five digits of a debit or credit card number, on a customer copy of a receipt. Limiting the amount of information that can be deciphered from a receipt helps protect a consumer’s bank information.

FACTA was enacted in 2003, and afforded businesses a grace period of three years, during which businesses could update their processes and technology to adhere to FACTA regulations.

However, over a decade later, consumers are reporting that some businesses are still violating the act. Allegedly, many businesses are still printing more card information than the law allows on debit card receipts. As a result of having their information exposed, consumers may experience fraudulent purchases being made on their account and other serious impacts on their financial security.

Consumers can take legal action against merchants and businesses who have printed unlawful information on receipts, and consumers are entitled to compensation for FACTA violations. FACTA violations can either be willful or negligent, and consumers can possibly receive compensation for either type of violation.

The FACTA restrictions on credit and debit card receipts apply to all electronically printed receipts that are given to customers. These are often printed at cash registers, self-service kiosks, and given to customers at restaurants. These regulations do not apply to merchant copies of receipts, hand-written receipts, or imprints taken of cards.

FACTA violations can occur in a number of ways. If any part of your card number other than the last five digits is exposed on a receipt, a violation has occurred. This is the case even if there are fewer than five digits printed in total. If your credit card or debit card number is 1111-2222-3333-4456, there are several ways a violation may appear:

Example 1: 11** **** **** 4456

Example 2: **** **22 **** 4456

Example 3: **** **** **33 ****

Additionally, businesses are prevented from including the expiration date of a receipt on a customer receipt. It is unlawful to include even a partial expiration date on a debit card receipt. Here are examples of ways in which an expiration date can unlawfully appear on credit or debit card receipts given to customers.

Example 1: EXP: 03/19

Example 2: EXP: 03/2019

Example 3: 0319

Example 4: Exp. Date 03/**

Example 5: EXP. **/19

Introduction of FACTA Red Flag Rules

In 2007, FACTA added Red Flag Rules, which require financial institutions and creditors to create identity theft protection programs. According to Squared Thinking, these Red Flag Rules are supposed to seek out identity theft and to prevent it before it occurs.

The Red Flag Rules list several red flags that indicate a consumer’s credit or identity may be in jeopardy. These red flags may appear as:

• New, unexpected documents that appear in a consumer’s credit report that includes new, suspicious accounts or other activity out of the norm for that consumer;
• A warning issued by a consumer credit service;
• Consumer alerts from customers, law enforcement personnel or businesses.

Depending on the severity of the red flag’s threat, the correct response can vary. In some instances, alerting a consumer to change a password might be all that is needed. In other cases, law enforcement may need to be notified of potential criminal activity.

Penalties for FACTA violations may include civil penalties, class action lawsuits, or federal and/or state-level enforcement measures. A vendor found in violation may receive a civil penalty between $100 and $1000 per customer. The federal government may impose penalties of up to $2,500 per FACTA violation.

A consumer who becomes a lead plaintiff in a FACTA class action suit often is eligible for an incentive award for pursuing the case on behalf of themselves and fellow consumers. Incentive awards vary greatly, but have been known to be as high as $20,000.

FACTA violations often go unnoticed, so look closely at your debit card receipts to see if a merchant violated FACTA. If so, you may be entitled to compensation.

Join a Free Credit Card Receipt Class Action Lawsuit Investigation

If you have a receipt, invoice or contract from a retailer or vendor that includes more than the last five digits of your credit card or debit card number or any portion of the expiration date, you may qualify to file a credit card receipt class action lawsuit.

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This article is not legal advice. It is presented 
for informational purposes only.