The Fair and Accurate Credit Transactions Act of 2003 (FACTA)

FACTA, which amended the Fair Credit Reporting Act, was intended to protect consumers from identity theft. The most significant provision in FACTA is Section 1861c (g) which prohibits any party that accepts payment by credit or debit card from including more than the last five digits of the card number or the expiration date on any electronically printed receipt provided to the cardholder.

As a result, businesses must ensure that they comply with those requirements. Alternatively, a business may print the credit or debit card expiration date on the receipt if it does not contain any digits of the card number. These restrictions, however, do not apply to receipts that are handwritten or prepared by imprinting the credit or debit card number on the receipt. The statute includes penalties that are significant in light of the number of credit card transactions processed by major retailers. Section 1681n provides that a person who willfully fails to comply with FACTA's requirements is liable for actual damages of not less than $100 or more than $1,000 per violation, plus punitive damages, attorneys' fees and costs. Even without any willfulness, Section 1681o permits an award of actual damages, attorneys' fees and costs for a negligent failure to comply.