Rules on Credit Card Expiration Dates

The Fair and Accurate Credit Transaction Act, or FACTA, protects customers from identity theft. Merchants must put policies into place to quickly and effectively deal with suspected identity theft. In addition, they must truncate credit card numbers and expiration dates when they print customers' receipts. These practices help reduce the risk of theft of credit card numbers and the fraudulent use of credit cards.

Removal from Receipt

Merchants have been required to remove or block out expiration dates from credit card receipts since 2006. This regulation helps protect consumers from identity theft. Thieves need the credit card expiration date as well as the credit card number to purchase items using a stolen credit card. By removing the expiration date from the credit card slip, merchants protect customers against thieves who get credit card numbers off of discarded receipts.

Exclusions

Merchants are required to truncate or remove expiration dates from all electronically printed receipts. They are not required to truncate the dates on handwritten receipts or imprints of credit card numbers. In addition, merchants may keep all information, including credit card expiration dates, in their private records as long as they truncate the expiration date on the transaction receipt they generate for the customer at the point of sale.

Prepaid Cards

Prepaid credit cards and gift cards may not have expiration dates in most circumstances as of 2011. Credit card companies may still put expiration dates on these types of cards if the expiration date is five years or more after the last time funds are put onto the card. The time period restarts every time a customer puts money onto a prepaid card. For example, if you put funds onto a prepaid credit card in March 2011, the card cannot expire until March 2016. If you then reload the card in May 2012, the card cannot expire until May 2017.

Enforcement of Rules

The Federal Trade Commission enforces rules regarding expiration dates. If a merchant fails to truncate expiration dates and thieves use the card, the affected customer may sue the merchant for non-compliance and collect attorney's fees as well as damages. In addition, the FTC can impose fines and penalties against merchants who fail to follow rules regarding expiration date truncation. Contact the FTC if you have questions or concerns about expiration date rules.