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Chapters Health System Card Numbers on Receipts FACTA Class Action

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The Fair and Accurate Credit Transactions Act (FACTA) is an amendment to the Fair Credit Reporting Act (FCRA). Among other things, it attempts to preserve the security of consumers’ credit card numbers from being carelessly disseminated on printed receipts after transactions. The complaint for this transaction alleges that Chapters Health System, Inc. violated FACTA, and continued to do so even after the plaintiff in this case warned it that it was violating the law. 

The complaint quotes FACTA as saying, “Except as otherwise provided in this subsection, 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.”

FACTA was passed in 2003, and it gave merchants and others who accepted cards for transactions three years to comply. The complaint notes that Visa, MasterCard, and American Express were quick to publicize their compliance with the law and to require that merchants who accept their cards comply with it as well. 

For example, American Express required that merchants “truncate the Card Number and do not print the Card’s Expiration Date on the copies of Charge Records delivered to Card Members. Truncated Card Number digits must be masked with replacement characters such as ‘x,’ ‘*.’ Or ‘#,’ and not blank spaces or numbers.”

Still, fifteen years after the passage of the law and a dozen years after it went into effect, on September 6, 2018, plaintiff John A. Diaz was handed a receipt containing too much information. He had just bought some items from Chapters Health System, Inc. in Tampa, Florida. (In addition to being a healthcare service, Chapters runs other businesses, such as a pharmacy and a chain of thrift stores.) He paid for the items using his personal MasterCard. The receipt handed to him contained the first six and last four digits of his credit card number. 

In subsequent days, Diaz made two other purchases and was again given receipts containing excessive information. It was only on October 15 that he became aware of FACTA through a television report. He examined his recent receipts and found that Chapters had violated the law. When he returned to Chapters and informed the manager of what he’d discovered, the manager appeared unconcerned and said that they did not own the cash registers, so they weren’t responsible.

Diaz made another purchase in November, only to discover that the receipts still bore too many credit card numbers. 

The class for this action is all persons in the US who, between December 19, 2016 and December 19, 2018, paid for a purchase at a Chapters-owned establishment using a credit or debit card and were given a receipt at the point of sale which showed more than the last five digits of the card or the card’s expiration date.

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