This guide will give an overview of how FACTA works to secure private information.
Many consumers use credit or debit cards to pay for their purchases. When using these modes of payments, one must be careful of receipts and ensure no identifiable card information is included before disposing of receipts.
The Fair and Accurate Credit Transaction Act (FACTA) was created to protect this information.
What is FACTA?
FACTA is a federal law created to safeguard credit and debit card information from being revealed in receipts.
In 2003, it was created to amend parts of the Fair Credit Reporting Act of 1970.
According to FACTA, identifiable information about a customer’s credit and debit card should not be printed on the receipt.
FACTA secures information by only permitting retailers to display the last five digits of the debit or credit card in the receipt. The last five digits, and not any other five-digit number within the card, should be printed.
The other digits of the credit or debit card can be truncated or replaced with symbols to hide confidential information.
Aside from the card number, they also require that the credit or debit card’s expiration date not be shown in the receipt.
The FACTA considers it vital that this information should be hidden to avoid identity theft or unauthorized use of cards from information left on receipts.
FACTA governs and covers all companies and retailers who issue electronically printed receipts, including receipts from cash registers, kiosks, stores, restaurants, invoices, and contracts.
The following are not bound and covered:
- Small business, especially those without electronically printed receipts
- Receipts inside parcels are directly mailed to the consumer’s home.
- Emailed, imprinted, or handwritten receipts from stores
Additional Safeguards Against Identity Theft
While some of the credit card information is already hidden by FACTA, identity thieves still have ways to trick consumers into obtaining their data.
Some identity thieves practice phishing, an attempt to pretend to be real account representatives to get the information they need.
To avoid getting tricked, always practice caution when someone requests your card details – both from emails and calls.
Consumers should make it a practice never to give out credit card information unless they can confirm their identity or initiate the request.
Another safeguard against identity theft is to ensure that receipts are appropriately disposed of.
One good practice is to shred receipts before throwing them away, including receipts from ATM, IRS, services receipts, debit or credit cards, or any other form of receipt.
It is also advised that receipts from the IRS and ATM should be handled more carefully since they are prone to be targeted by identity thieves for their vital personal information.
These documents should be kept securely and only be thrown out after shredding.
Under FACTA, retailers who violate the law and fail to hide customer’s private information can be sanctioned for doing so.
Consumers who receive non-FACTA compliant can sue the merchants and ask for compensation amounting from $100 to $1000.
They can make these claims and file class action lawsuits even if they are not identity theft victims.
Editor’s Note on The FACTA Law:
This article is published to give you an overview of the FACTA Law that helps secure privacy regarding receipts.
Have you received non-FACTA compliant receipts? Please send us a message by clicking the ‘Contact Us’ button below. We’d love to hear back from you!
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