CONSUMER ALERT: Pay Attention To The Possible FACTA Violations On Your Receipts
As you buy your favorite items either at your go-to brick-and-mortar store or your ride-or-die online shopping site, you must be very mindful of what information is being displayed that may compromise your personal privacy and safety.
One of the most important pieces of information in almost every financial transaction you do, whether online or offline, is your financial details.
This may include your bank account name and number, card information, etc. If they fall into the wrong hands, you may have your personal safety compromised and may cause you to be more susceptible to incidents such as scams, identity fraud, unauthorized financial transactions, etc.
In the digital age that we are living in right now, the chance of such imminent danger like this happening to you is highly likely.
Though there is the Fair and Accurate Credit Transactions Act, many companies violate the law and its helpful provisions, which end up putting their customers in harm’s way.
The Fair and Accurate Credit Transactions Act or FACTA is a piece of federal legislation aimed to protect consumers and their private financial information by requiring businesses to follow certain guidelines in how to present and process the information they receive during financial transactions.
One of the most important provisions of FACTA is the requirement that company’s issuing receipts to their customers should follow the truncation method in displaying their card information.
Truncation is a method where important information is replaced with symbols such as an asterisk (*) and number sign (#) in order to mask them.
Companies are required to properly mask sensitive information with these symbols.
They are only allowed to show the last five digits of a customer’s card number on receipts.
Additionally, they are not allowed to display any of the card’s expiration date information.
Receipts and other proofs of financial transactions between businesses and customers are required to follow the provisions set forth by FACTA.
There are some exceptions, though. Only customer copies of receipts and financial transactions are required to follow truncation.
Business copies are allowed to keep their customers’ full financial information in order to facilitate their business processes.
However, they are required to undertake the necessary steps to ensure that these pieces of information are kept safe and confidential.
Not all receipts are covered by the FACTA too. Electronically generated receipts and proofs of purchases are automatically covered by FACTA.
Handwritten receipts are not covered by the law. If a customer receives a handwritten receipt that does not follow truncation, they should keep it or dispose of it accordingly.
We here at Consider The Consumer, encourage members of the general public to be vigilant of instances wherein their rights may be violated.
The Federal Trade Commission, the federal government agency tasked with enforcing the provisions set forth in FACTA, is always on the lookout for possible reports of violations erring companies have committed.
Check out the latest copies of receipts you have received to find out if they are truncated properly.
If not, we would like to hear from you. Legal action is always an option you are open to discovering to hold erring companies accountable for their misdeeds – and we would be more than glad to help you out.
Editor’s Note on Possible Receipts Class Action Lawsuit Over FACTA Violations:
This primer aims to give you a quick rundown on one of the most important things you should know about your personal financial privacy and how the information indicated on your receipts plays a role in keeping you safe from data compromises.
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