FACTA Regulations

If you accept credit or debit cards for business transactions and electronically print receipts that are provided to the cardholder at the point of sale or transaction, you must comply with Section 1681c(g) of the federal Fair and Accurate Credit Transactions Act ("FACTA"). On December 4, 2006, Section 1681c(g) became applicable to all credit or debit card transactions involving electronically-printed receipts.

Section 1681c(g) forbids a person or business from electronically printing receipts that contain "more than the last 5 digits of the card number or the expiration date." FACTA provides that a consumer may recover actual damages plus attorney's fees for a negligent violation of the Act. More importantly, however, FACTA allows a consumer to recover statutory damages of between $100 and $1,000 per violation if the defendant willfully violated FACTA. The U.S. Supreme Court recently clarified that the term "willful" covers not only knowing violations of a statute, but also reckless ones. Numerous class action lawsuits have already been filed across the country alleging "willful" violations of FACTA, and more are certain to come.

In order to avoid litigation, it is important that businesses ensure their registers are properly truncating the credit or debit card information in any transaction for which an electronically-generated receipt is provided. If you have any questions about FACTA or its effect on your business, please contact Phil Whistler at philip.whistler@icemiller.com.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice.  The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.