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The Fair and Accurate Credit Transaction Act, passed by Congress in 2003 may as a federal mandate directly affect your business operations. If you are not compliant it may pose a risk to your bottom line. The Act was passed to protect your customers’ privacy, and identity, by making sure that receipts do not display the entire credit / debit card account number. It should only show the last five digits without making obvious the card’s expiration date cannot be revealed. The Act has attracted a lot of debate, and according to one theory merchants will still be in compliance if either their receipts limit the digits appearing or if receipts omit the expiration date. They do not have to comply with both stipulations. There are others that hold that both mandates are to be followed. Further controversy arises with the differing perspectives on whether merchants’ receipts must also contain no greater than the last five digits and/or leave out the expiration date. According to ongoing business practices, merchant receipts have always contained sensitive customer data. The debate is on whether the act does not pertain to merchants’ receipts, or does it apply to both merchant and customer receipts and slips. Regardless of the ambiguous language of the Act , enforcement is entrusted to the Federal Trade Commission (FTC). But the law enables customers to sue for damage if a merchant is out of compliance. Quite a few large companies have been subject to a class action suit as a result of alleged violations of the law. Restaurants and/or restaurant chains, too have lost millions owing to their transgressions. companies cannot and should not circumvent laws, especially when there is potential for customers to suffer privacy/identity and concomitant monetary loss. If law is violated, it does not even matter whether any damage has actually been incurred by the customer.A recent ruling declared that companies are still liable for any breach of this law, regardless of the set of circumstances for the infringement. Hence, it is critically important that retail merchants must provide their customers with receipts that have the least amount of financial information revealed. The credit card terminal that you use to process payments must truncate the account number, and, if possible, omit the expiration date.
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