Why should you keep track of receipts for holiday sales?

Between Thanksgiving, Black Friday, and preparing for the holidays, consumers use their credit cards more than ever this time of year. However, many consumers may not know the importance of saving a credit card receipt. Doing so is key to protecting against identity theft.

Credit card digits and identity theft

There is a federal law that was enacted to protect consumers from identity thieves who use information printed on consumer receipts to commit fraud and identity theft. In 2003, Congress passed the Fair and Accurate Credit Transactions Act, or FACTA, to help consumers safeguard their credit card and debit card information.

FACTA contains provisions requiring businesses to remove or truncate information on credit card and debit card receipts. Under these rules, businesses are restricted to printing only certain credit card digits on printed receipts.

According to the Federal Trade Commission (FTC), the agency tasked with enforcing FACTA, it is important that businesses follow truncation requirements closely.

“Credit card numbers on sales receipts are a ‘golden ticket’ for fraudsters and identity thieves,” according to the FTC website. “Savvy businesses appreciate the importance of protecting their customers — and themselves — from credit card crime.”

Why keep track of receipts?

While FACTA requires merchants to follow strict guidelines, consumers can help protect themselves by keeping track of their receipts and checking them for FACTA violations. Keeping track of receipts not only protects you from identity theft, it may also result in money from the business that printed too much information.

Fines for FACTA violations are between $100 and even $1000. In addition, if a business has violated FACTA provisions for hundreds or thousands of customers, it may have to pay damages in court or as a part of a settlement agreement. Consumers who serve as lead plaintiffs in FACTA class action lawsuits have been awarded as much as $20,000 in settlements.

Save your receipts, check for FACTA violations

It can be hard to keep track of receipts after a busy day of holiday shopping, but take a moment to locate those receipts in the bottom of the bags and keep an eye out for extra numbers or other FACTA violations.

FACTA violations can include extra credit card digits, or a credit card’s expiration date printed on a receipt. Under FACTA, only the last five digits of a credit card or debit card may be printed on a receipt, and the expiration date may not be printed at all.

For example, a FACTA compliant receipt may read:

**** **** **** 5432 exp **/**

But, if a receipt read as follows, it would be a FACTA violation:

1234 **** **** **** exp **/**

Keep in mind that FACTA receipt laws apply only to receipts produced by an electronic register — not to handwritten receipts, receipts sent by text or email.

Tips to keep track of holiday receipts

There are a few strategies to keep track of holiday shopping receipts. In addition to checking for FACTA violations, having a way to organize receipts can also help you locate them should you need to return an item, or need the receipt for tax purposes, notes The DIY Playbook.

The blog notes that some consumers may want to invest in a 12-slot, envelope-sized organizational folder. Receipts can be organized by month or by category. Alternatively, hanging folders or envelopes can be used, depending on your preference.

For consumers who might not have the time or organization skills to keep receipts categorized, the blog recommends just using a jar and dropping in receipts as necessary. Another idea proposed by The DIY Playbook is to tape clothing receipts to the tag. In addition to checking it for FACTA violations, the receipt is with the clothing if you end up returning it.

FACTA settlements

Whatever method you use, be sure to get and keep those receipts to protect yourself from identity theft or FACTA violations. A number of seemingly small FACTA violations have led to multimillion-dollar settlements for some consumers.

In 2018, Subway agreed to pay $30.9 million to end a class action lawsuit alleging that the sandwich chain printed four extra credit card digits on its receipts. More recently, the merchant Everi paid $14 million to resolve a class action lawsuit stemming from allegations that it printed both the first and the last four digits of consumers’ credit cards and debit cards on receipts.

Filing a FACTA lawsuit

If your receipts show violations of FACTA, you may be able to file a lawsuit and pursue compensation. Remember that if your receipt has been printed with a FACTA violation, the same machine may have printed hundreds or even thousands of receipts with the same violation, placing countless customers at risk. Holding companies accountable for these violations helps protect you as well as your fellow consumers.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you 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.