How Did Four Extra Digits on a Credit Card Receipt Lead to a $30.9M Settlement? 

Back in 2018, the restaurant chain Subway settled a major class action lawsuit for a whopping $30.9 million, all over an issue with its printed credit card receipts, which allegedly displayed just four extra digits of their card information.

Plaintiffs alleged that the extra digits were a violation of the Fair and Accurate Credit Transactions Act (FACTA), and that several different locations—and thousands of customers—were affected by the violations, leading to what is reportedly the largest FACTA violation settlement to date. Knowing the credit card receipt laws can help make sure you know what to look out for on your receipts and keep your information safe.

Is Showing Extra Digits on a Credit Card Receipt Illegal?

Showing extra digits on credit card receipts is illegal, and there are specific FACTA guidelines to regulate exactly what is allowed to be printed on a receipt. These rules apply to printed receipts specifically, and do not include handwritten receipts.

Could the Extra Digits Lead to Credit Card Fraud?

Revealing too much credit card information on a receipt is a serious concern, as this could lead to credit card fraud or even identity theft. Given these extra digits, fraudsters can use this information to much more easily access your card and use it for their own purposes.

In order to protect yourself from potential fraud, keep an eye on your receipts and check that they follow FACTA guidelines. Also be sure to check your monthly statements for any unusual activity, and report any suspected fraud immediately.

What Are the Credit Card Receipt Laws?

The Fair and Accurate Credit Transactions Act (FACTA) is one of the major federal laws put in place to protect credit cardholders. FACTA is a set of credit card receipt laws that regulate how much credit or debit card information can be included on an electronically-printed receipt. FACTA was first introduced back in 2003 in order to protect consumers from fraud and identity theft, and has been in full effect since 2006.

Now, any establishment in the U.S. should be using machines that have been programmed specifically to comply with these rules.

However, some businesses may still commit receipt violations—so here’s what to look out for.

The actual text of FACTA reads: “No person that accepts credit cards or debit cards for the transaction of business shall print more than the last 5 digits of the card number or the expiration date upon any receipt provided to the cardholder at the point of the sale or transaction.”

In short, FACTA regulates two major things: the digits of your credit or debit card number, and your card’s expiration date. Both of these numbers must be heavily truncated (shortened and censored) to protect your information.

Under FACTA rules, no more than the last five digits of a card number can be printed, though companies can print fewer than these digits—as long as they’re from the last five digits—but no extra digits are allowed. This should look something like this:

**** **** ***1 2345

Many companies choose to truncate to just the last four digits (since card numbers come in four-digit segments) like this:

**** **** **** 4321

FACTA also prohibits printing any portion of the card’s expiration date. With the entire expiration date truncated, it generally looks something like this:

**/**

or **/****

How Does FACTA Protect You?

FACTA protects consumers by setting specific rules for protecting card information, showing consumers what to look for on their receipts, and imposing fines on companies that fail to comply. Affected consumers may be able to collect between $100 and $1,000 per violation under FACTA.

FACTA also gives consumers the right to one free credit report a year through annualcreditreport.com.

How Did Subway Credit Card Receipts Lead to $30.9M Settlement?

Violations of FACTA have led to some significant class action settlements over the years, including the massive $30.9 million settlement from the Subway restaurant chain back in 2018. Lead plaintiffs alleged that Subway printed the full expiration date on their electronically printed receipts in clear violation of FACTA’s rules. Not only did this violation affect the plaintiffs, they said, but thousands of others who had made purchases at the one of the Subway locations affected by noncompliant machines.

According to the lawsuit, not all Subway restaurant locations were affected by this violation, but several had Subway Payment Manager systems that were programmed to print full credit or debit card expiration dates.

Class members involved in that settlement were those who had made purchases at the affected Subway locations between Jan. 1, 2016 and Mar. 23, 2017.

Subway agreed to settle the lawsuit in the largest of the FACTA class action settlements so far, for $30.9 million, to be distributed among class members. Each class member could receive up to $75.

Should You File a Credit Card Receipt Lawsuit?

If you’ve noticed extra digits printed on your credit card receipt in violation of FACTA credit card receipt laws, you may be able to file a lawsuit and pursue compensation. Reporting FACTA violations helps enforce these rules and protect your information, but also helps to protect the information of hundreds or even thousands of other consumers.

Indeed, if you have received an electronically printed receipt that violates FACTA, this may mean that many other consumers like you have been similarly affected, paving the way for a class action lawsuit. Lead plaintiffs in FACTA class action settlements may be able to receive an incentive award in the case of a settlement. In certain cases, incentive awards of as much as $20,000 have been approved.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Regularly check the credit card information printed on your receipts for any potential FACTA violations, and make sure to keep any and all relevant receipts as evidence to support your claim.

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.