Are you a receipt saver? Your old receipts may be violating FACTA

In today’s world, many of our wallets, purses, and glove compartments are full of printed receipts. Some of us just throw these receipts away without looking at them (or when our wallets are too cluttered), and it would not be surprising to learn that one or two drop out in the course of trying to access cash, debit cards, and credit cards, or cosmetic products — but saving these receipts may be more important than you might expect.

A receipt saver may be in the perfect position to take legal action against retailers who violate their rights under the federal law, FACTA, which was created to help protect consumer privacy by limiting how much credit card information retailers may include on receipts.

If you have made recent purchases and the retailer included more than the last five digits of your card number on your debit card receipt, you may be eligible to pursue legal action.

Why save receipts?

There are a variety of reasons to save receipts from purchases, including the following:

• Warranties: When purchasing appliances, electronics, or jewelry, keeping receipts can allow consumers to file a successful warranty claim.
• Home expenses: Consumers who pay for major expenses related to their home or vehicle should keep receipts for their records.
• Returns and exchanges: Keeping receipts can help consumers if they need to return or exchange an item. These receipts can also help prove a purchase in the case of a recall or settlement.
• Expense reimbursement: Employees can keep receipts in order to get their work-related expenses reimbursed by their employer. In most cases, receipts are required in order to receive reimbursement.
• Budgeting: Some may find receipts useful when tracking expenses or balancing their checkbook.
• Taxes: Come tax season, consumers may need receipts in order to claim certain credits and deductions. Saving and organizing receipts can help consumers streamline this process.

How to keep track of receipts

If consumers are interested in saving their receipts for the above or other reasons, they have a variety of options to keep track of these essential pieces of paper.

For collectors of paper receipts, one option is a filing system. Some financial experts recommend a January to December accordion file for day to day receipts, while specific expenses (home, auto, large purchases, etc.) should be kept in their own labeled file.

In the age of advancing technology, it’s no surprise that there are several electronic solutions to track receipts. There is financial software, such as Quicken, which can be used to enter and track receipts. There are also additional apps and services which allow consumers to simply scan their receipt or snap a picture to keep track of their expenses.

Is your full credit card number displayed on receipts?

Under the Fair and Accurate Credit Transactions Act (FACTA), businesses are only allowed to include the last five digits of a debit card number or credit card on an electronically printed receipt. If businesses print more than this information, or any information about the card’s expiration date, they may be in violation of FACTA rules.

FACTA was passed in 2003 to protect consumers from financial and identity theft, and has been in full effect since 2006. In addition to governing what information may and may not be included on receipts, the act also allows consumers access to one free credit report per year, and allows consumers to place fraud alerts in their credit files. The act also set standards in place that make it easier to detect and prevent possible instances of identity theft.

Consumers who are familiar with basic FACTA debit card receipt rules are better able to protect their information from fraud and theft, as well as the information of others that may also have been exposed. Consumers who report violations of FACTA’s receipt rules may even be eligible for some financial award.

Businesses that fully understand these FACTA credit and debit card receipt rules are also better able to protect their customers and avoid potential FACTA lawsuits.

Businesses are mandated under FACTA to truncate numerical information to protect consumers, and remove expiration date information. A receipt saver may be in the ideal position to check their transactions for these federal law violations, and protect themselves from identity theft.

There are two different ways that a merchant may violate FACTA. The first includes adding any other numbers beyond the last five digits of the debit card or credit card number on the debit card receipt.

The other way that a merchant could be accused of violating FACTA is if they include any portion of the expiration date of the card on the customer’s receipt. Either one of these violations may entitle a consumer to participate in a debit card receipt class action lawsuit investigation.

However, despite the reality that FACTA has been in place for more than a decade, this truncation is not always properly done by merchants, which means that consumers can be exposed to credit card fraud or identity theft. FACTA currently applies to all customer receipts, including a debit card receipt that is printed by a self-service kiosk, a cash register, or those given to a customer at restaurants.

Any receipt that is printed electronically is covered under FACTA and must truncate the card’s expiration date as well as any digits other than the last five. Usually this truncation is done by replacing the digits with another symbol such as the star or pound sign. Receipts that are imprinted or handwritten are not bound by FACTA. If you are a receipt saver, you may want to be sure to keep these receipts safe from potential thieves. FACTA also does not apply to receipts that are included with shipped purchases.

The placeholder stars or hashtags that replace key digits of a credit card number on a printed receipt are an example. According to FACTA, only the last five digits of the utilized account number are allowed to be seen on a receipt. Any variation in the order — such as by printing the first five or more than five — would be grounds to file a credit card receipt lawsuit.

Another violation that could provide the evidence needed to bring a credit card receipt lawsuit against a merchant or restaurant would be the printing of an expiration date in any form. Examples of common receipt errors when it comes to the credit card receipt date are:

EXP FEB23

EXPIR 0223

EX 022023

EXPIRY 02/21/2023

EXP DATE 02/****

EX **/2023

0223

022023

If receipts that contain full card numbers, expiration dates, or other personal information fall into the hands of thieves, they may be used to commit identity theft or other crimes. Criminals may be able to piece together enough information from several non-FACTA compliant receipts to impersonate a consumer and steal their financial or personal information. Several retailers including Godiva and J. Crew have been hit with FACTA lawsuits in recent years by consumers claiming that they failed to properly truncate their credit card numbers on their receipts.

Do you need to keep receipts?

Thanks to digital software and your smartphone, it’s easy to snap a picture of your receipt, store it on your phone and then shred the paper receipt for safety.

Shredding your receipts as soon as possible is a good idea since the merchant may have printed too much of your personal information on it. Keeping a file of all your receipts is not necessary and could expose you to identity theft, so now is a good opportunity to use digital tools to capture what’s relevant and shred immediately.

If you’re an individual and not a business owner keeping receipts, you may want to do so until the return or exchange period has expired. Either take a picture with any included barcode or keep it in a paper file dated with the day you can safely shred the receipts.

If you choose to be a digital receipt saver, make sure it’s done in a secure location. There’s no sense snapping a picture of your receipt if your device is easily hackable since an identity thief could steal this information, too.

There are many secure options for receipt storage for individuals and business owners out there; do your research to determine what would work best for you. Keeping hard copies of old receipts isn’t necessary and if the debit or credit card numbers are up to date, you’re at risk.

How to join a FACTA class action

A receipt saver who suspects that their FACTA rights were violated may be able to take legal action. These consumers should contact an experienced attorney to have their case evaluated for eligibility.

Eligible consumers may be able to file their own FACTA class action or join a preexisting complaint as an additional representative. In the case of FACTA settlements, consumers may be able to join a Class of similarly situated individuals.

Regardless of how a consumer joins a FACTA class action, these legal complaints can result in significant compensation. Even if plaintiffs and Class Members are unable to recover the $1,000 in statutory damages allowed per violation of the law, payments from a FACTA class action settlement could provide notable benefits, and help protect other consumers from credit card fraud threats.

Filing a lawsuit over FACTA violations can be complicated, but hiring a FACTA attorney can help lead to a successful case. Top Class Actions has laid the groundwork for you by connecting you with an experienced FACTA attorney. A FACTA attorney is likely to already possess the knowledge and resources to guide you through a successful claim.

Make sure to keep receipts that violate FACTA rules as evidence to strengthen your case.

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.