30 January 2012
On January 24, 2012, the U.S. Court of Appeals for the Third Circuit held that it is a violation of the Fair and Accurate Credit Transactions Act (FACTA) to include any portion of a credit or debit card’s expiration date on an electronically printed customer receipt. Although the defendant in that case was spared from having to pay statutory damages, punitive damages, or attorneys’ fees to the plaintiff, the Court’s opinion suggests that businesses that make such a mistake in the future may not be so fortunate. All businesses—large or small—that accept payment by credit or debit card should carefully review their policies concerning credit and debit card sales to ensure that they are in full compliance with FACTA and should seriously consider the implications of this decision. Financial institutions or other businesses that provide point-of-sale terminals to merchants should also take note of the Third Circuit’s reasoning.