Christina Spicer  |  September 30, 2020

Category: Legal News

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Couple paying with credit card

Debit and credit card receipts are not supposed to contain personally identifying information, according to federal law. Determining whether or not it is safe to throw away these receipts depends upon an understanding of the Fair and Accurate Credit Transactions Act.

What Is FACTA?

FACTA was originally passed in 2003 as an amendment to the Fair Credit Reporting Act. It includes rules about what companies can and cannot list on debit card payment receipts and credit card receipts. The uniform acceptance of what could and could not be shown on receipts was intended to cut back on identity theft and other fraudulent activity.

If credit card receipts show too much information, such as the card number or the expiration date details, identity thieves could use this information to carry out fraud. Those consumers who identify that their credit card receipt contains more information than is legally allowed can take legal action.

What Does a FACTA Compliant Receipt Look Like?

Federal law requires most businesses to “truncate” credit and debit card information on customer receipts. “Truncate” simply means to shorten the information on the receipts, according to the Federal Trade Commission.

The FTC warns that, at most, the receipt should only include the last five digits of a credit or debit card number. Additionally, the expiration date of the card should be completely deleted.

An example of card information on a compliant receipt should look something like this:

Acct: **** **** ***0 9876

Exp: **/**

Businesses can truncate the card number further, for example:

Acct: **** **** **** 9876

However, a receipt should never include any other numbers other than the last five. The following are examples of receipts that violate FACTA requirements:

Acct: 1234 **** **** ****

Acct: 1234 **** **** 9876

Acct: **** **** 3210 9876

In addition, all parts of the expiration date of a credit or debit card should be removed from the receipt. Another example of a compliant receipt is:

Exp: ****

The following should never appear on a receipt:

Exp: 01/**

Exp: 01/23

Exp: 1234

It is also important to note that FACTA rules only apply to electronically printed receipts given to customers at the point of sale. Transaction records retained by the business do not need to comply with receipt requirements, notes the FTC. Imprinted and handwritten debit and credit card receipts also do not fall under FACTA receipt requirements.

What Is the Process of a Credit Card Getting Authenticated?

According to wallethub.com, the issuing bank will verify the validity of a customer’s credit card using tools such as card security codes or an address verification service. This verification occurs during the authentication stage of a purchase. The issuing bank will then validate the credit card number and match the billing address to the one on file in addition to validating the CVV number.

At that point, the issuing bank will decline or approve the transaction. Then the merchant will provide the customer a receipt to complete the sale.

While most people don’t look carefully at their receipts, the disclosure of too many private details on a receipt tossed in the trash could lead to stolen debit card or credit card information.

What Receipts Are Safe to Throw Away?

Experts in financial services and shredding businesses state that the only receipts that are safe to throw away are those that contain no personally identifying information whatsoever.

Credit card statements, credit card receipts, bank statements, ATM receipts. and receipts with your signature all may need to be shredded after a certain period of time to protect sensitive data, according to Tru Shed.

Suing Under FACTA

FACTA allows consumers to sue the merchant for damages when a noncompliant receipt is issued. Consumers will need to hold on to that receipt if they want to make a FACTA claim. Businesses found non-compliant with FACTA regulations can face fines and statutory damages ranging between $100 and $1,000 per violation.

closeup of credit cards and a pen

For example, one FACTA lawsuit was filed by a man from Florida, who reportedly experienced receipt problems due to an electronically printed receipt from Penn National’s Sanford Dog Track. Plaintiff Mat J. says he used his personal credit card on June 24, 2017, at the track for a transaction and received a faulty receipt in return.

According to the lawsuit, the receipt had shown the first and last four digits of his credit card account number, plus his first and last name. This means a total of eight digits were shown on the receipt, arguably in violation of FACTA policy.

Mat’s lawsuit alleged that these receipts exposed him and other customers to a higher chance of fraud or identity theft because of the personal information displayed on the receipts.

The FACTA lawsuit ultimately alleges Penn National recklessly exposed their customers to a greater risk of fraud and identity theft, when the company should have confirmed whether or not their receipt software was sufficient.

The FACTA Penn National Lawsuit is Case No. 6:18-cv-01741, in the U.S. District Court of Middle Florida, Orlando Division.

Another FACTA lawsuit that was filed in 2017 has been revived. A couple filed suit against Six Flags, a Great America theme park, alleging the park violated FACTA by printing the first six digits of their credit card number on their receipts.

Six Flags tried to convince the court that the appearance of the first six digits “was a harmless technical violation,” but the couple said Six Flags willfully violated FACTA for years by failing to update their point-of-sale terminals.

Lake County Judge Luis Berrones dismissed the Six Flags lawsuit, but a judicial panel from the Illinois Second District Appellate Court reversed the dismissal, saying the couple “adequately alleged a knowing violation or a reckless disregard of FACTA’s truncation requirements.”

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.

Get a Free Case Evaluation

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

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