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Know the Facts About FACTA

May 17, 2008

The Fair and Accurate Credit Transaction Act (FACTA), passed by Congress in 2003, requires that "no person that accepts credit cards or debit cards for the 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." This provision of FACTA took full effect Dec. 4, 2006. The clarity of the FACTA language has been called into question. Specifically, legal issues have arisen in litigation filed under FACTA on whether the measure requires businesses to both cut the number of digits and remove the expiration date. In a court ruling on this issue, a federal district court in California, whose decision was released April 5, 2007, said the language was clear and that businesses needed to take two steps: restrict printed card digits on receipts to five or fewer and get rid of the expiration date.

In May 2007, the FTC issued guidance on compliance that can be found on their website:

As a result of this confusion, Congressman Tim Mahoney (D-FL) introduced H.R. 4008, The Credit and Debit Card Receipt Clarification Act. It would clarify that any merchant that complied with the truncation requirement for credit card numbers on receipts but left on the expiration date would be in good faith compliance with the law. The bill has bipartisan support in both the House and Senate and the NRA is actively working with Congress to ensure that it is enacted soon.

Questions? If you have any questions, please contact Mike Shutley at 202-331-5963 or at .