FTC Business Alert

Federal Trade Commission Bureau of Consumer Protection Division of Consumer & Business Education

Slip Showing?

Federal Law Requires All Businesses to

Truncate Credit Card Information on Receipts

	 What’s on the credit and debit card receipts you give your customers? The Federal Trade

Commission (FTC), the nation’s consumer protection agency, says it’s time for companies to check

their receipts and make sure they’re complying with a law that’s been in effect for all businesses since

December 1, 2006.	

	 According to the federal Fair and Accurate Credit Transaction Act (FACTA), the electronically

printed credit and debit card receipts you give your customers must shorten — or truncate — the account

information. You may include no more than the last five digits of the card number, and you must delete

the card’s expiration date. For example, a receipt that truncates the credit card number and deletes the

expiration date could look like this:

	 	 	 	 ACCT: ***********12345

	 	 	 	 EXP: ****

	 Why is it important for businesses to make sure they’re complying with this law? Credit card

numbers on sales receipts are a “golden ticket” for fraudsters and identity thieves. Savvy businesses

appreciate the importance of protecting their customers — and themselves — from credit card crime.

	 But there are other important reasons to make sure your slips are ship-shape. Noncompliance could

open a company up to an FTC law enforcement action, including civil penalties and injunctive relief.

In addition, the law allows consumers to sue businesses that don’t comply and to collect damages and

attorney’s fees.

	 While Congress passed this provision in December 2003, it has been phased in gradually, requiring

merchants with newer electronic card processing machines to comply by December 2004. Merchants with

older machines were given until December 1, 2006. So now all companies that electronically print credit

or debit card receipts must truncate the information on the copy they give their customers. That’s why it’s

important to make sure all your equipment complies with the law.

	 Several details of the law are worth noting: It applies only to electronically printed receipts, not to

handwritten or imprinted ones. And it applies only to receipts you give your customer at point of sale, not

to any transaction record you retain. Be aware, however, that when you keep your customers’ personal

information — including account data — you have an obligation to keep it safe. Read Protecting Personal 

Information: A Guide for Business, available at ftc.gov/infosecurity, for tips on safeguarding sensitive

data.
	 The FTC works for the consumer to prevent fraudulent, deceptive, and unfair practices in

the marketplace and to provide information to businesses to help them comply with the law. To file a

complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP

(1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other

fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil

and criminal law enforcement agencies in the U.S. and abroad.

Your Opportunity to Comment

	 The National Small Business Ombudsman and 10 Regional Fairness Boards collect comments

from small businesses about federal compliance and enforcement activities. Each year, the Ombudsman

evaluates the conduct of these activities and rates each agency's responsiveness to small businesses. Small

businesses can comment to the Ombudsman without fear of reprisal. To comment, call toll-free

1-888-REGFAIR (1-888-734-3247) or go to www.sba.gov/ombudsman.

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

May 2007