Receipts are so common that we often forget just how important they can be. From shopping for groceries to buying a new car, there are countless situations where customers may be provided with a sales receipt by a business. While providing customers sales receipts is not always legally required for businesses, there are nonetheless laws that govern what can and cannot appear on a sales receipt. For this reason, businesses should consider using a receipt template when drawing up receipts for customers. Here are a few reasons why using such templates can help businesses stay on the right side of the law.
Recent Anti-Fraud Legislation
In 2003, the United States Congress passed the Fair and Accurate Credit Transactions Act (FACTA). This important piece of legislation applies to merchants throughout the country and it has a major impact on what merchants can and cannot include on sales receipts. The purpose of the legislation is to help protect customers from falling victim to identity theft and credit card fraud. An up-to-date receipt template should be designed to reflect the changes that were brought into force by FACTA. These templates may be especially useful for older businesses that may not have cash registers capable of handling these new federal requirements.
FACTA rules are extremely important for businesses to follow, especially in cases where a customer pays for goods and/or services using a credit or debit card. The law means that sales receipts can only display a maximum of the last five digits of a customer's credit card number and the receipt cannot display the card's expiration date. Truncating credit and debit card numbers in this way helps ensure that if a receipt is discarded, there is insufficient information on that receipt for somebody else to make purchases using that customer's credit card information.
All merchants are required to comply with FACTA's rules, including not just traditional brick-and-mortar shops but online businesses as well. Legal consequences for non-compliance include fines ranging from $100 to $1000 per violation, not to mention the likely lose of business that would also result.
A receipt template can help merchants stay on the right side of FACTA by providing them with an easy guideline for filling out proper sales receipts. Old equipment or a lack of knowledge of current law are just some of the reasons why merchants may inadvertently find themselves in violation of FACTA. By using a receipt template, these merchants stand a better chance of remaining legally compliant and maintaining the confidence of their customers.