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Merchant Requirements for Credit Card Slips and Consumer Information

Merchant Requirements for Credit Card Slips and Consumer Information

The Fair and Accurate Credit Transactions Act was passed in December, 2003. FACTA rules limit the amount of information that can be printed on a credit or debit card receipt. In addition, businesses must properly dispose of documents containing consumer information. The rules are aimed at preventing identity theft and have been in effect since 2005.

The Federal Trade Commission is charged with enforcing the act. In addition to FTC penalties, civil law suits may be filed by consumers against merchants and businesses that violate FACTA.

Credit Card Receipt Requirements:

• Only the last five digits of the credit or debit card can be shown on electronically printed receipts
• No card expiration dates can be printed on receipts

Disposing of Consumer Information:

Businesses must take measures to destroy all consumer reports to the point that they will not be reconstructed or reread. This rule affects anyone who uses consumer reports or personal information to make decisions within their business, including lenders, insurers, employers, landlords, mortgage brokers, attorneys, debt collectors and private investigators.

Reasonable Measures of Destruction Include:

• Burning, pulverizing, or shredding documents so they become impossible to read or put back together.
• Erasing electronic files or media files that contain any consumer reports so that they cannot be recovered or reconstructed.
• After auditing and making sure their practices are sufficient and guaranteed to be successful they can also hire an outside source who is proficient in the destruction of personal records 

Consequences of Non-Compliance:

• Fines: ranges upon the number of violations
• Civil law suits filed by defrauded consumers

For questions or comments regarding the FACT Act please contact the Federal Trade Commission at 600 Pennsylvania Avenue, N.W., Washington D.C., 20580, (877) 382-4357 or online at www.ftc.gov.

This NFIB alert does not constitute legal advice, and you should consider consulting an attorney about any laws and regulations that are applicable in your state, locality or particular type of business.