A Risk Management message from Secura
Business owners must abide by credit and debit card receipt laws to avoid penalties
Business owners who print card numbers and expiration dates on receipts of credit and debit card purchases could find themselves the targets of lawsuits.
The Fair and Accurate Credit Transactions Act (FACTA) took effect Dec. 4, 2004, and restricts information that can be printed on electronically generated credit card receipts. These receipts may not include more than the last five digits of card numbers or expiration dates. The law specifically states “no person that accepts credit cards for 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 sale or transaction.” 15 U.S.C. section 1681 (c)(g).
Individuals who print receipts with expiration dates or more than the last five digits of a card number and do so “willfully” can be held liable to pay their customers damages of between $100 and $1,000, plus unlimited punitive damages and attorneys’ fees.
Business owners should take steps to remove expiration dates and credit card numbers (other than the last five digits) that are electronically printed on credit and debit card receipts. Doing so is an easy way to avoid a costly lawsuit.
A detailed report can be found in the Prevention ConnectionSM portion of SECURA’s Web site. The report is titled Credit and debit card receipt warning. Policyholders will need to enter their policy numbers, names, and ZIP codes to access Prevention Connection from secura.net. If you have any questions, please e-mail risk_management@secura.net.
NOTE: This article is intended for informational purposes only. By providing this information, SECURA is not implying coverage nor should it be assumed that there is coverage for these claims.