Mandatory Technical Information on Receipts for Card-Present Transactions in the U.S.

When it comes to conducting card-present transactions, merchants and businesses in the United States must comply with specific regulations regarding the information that must be included on receipts. These regulations ensure consumer protection and prevent fraudulent activities. This article delves into the mandatory technical information that is required on receipts in the U.S., including the Card Verification Method (CVM), Application Identifier (AID), and Transaction Validation Result (TVR).

Understanding Card-Present Transactions

Card-present transactions refer to transactions where the card used for payment is physically present during the transaction. This can include debit and credit cards. These types of transactions provide a higher level of security and accuracy compared to card-not-present transactions, making them more common in retail and other commercial settings.

Mandatory Information on Receipts

Merchants are required to provide a receipt that includes essential information to comply with various regulatory standards. This information is not only crucial for consumer protection but also serves as a record for future reference and dispute resolution.

The following sections provide a comprehensive overview of the mandatory technical information that merchants must include on receipts for card-present transactions in the U.S.

Card Holder's Name and Account Numbers

Typically, the receipt must include the card holder’s name and the last four digits of the card number. Excluding the expiration date, merchants are expected to ensure that only the minimum necessary information is displayed.

Important Note: If a merchant includes more than four digits from the card number on the receipt, they can face legal consequences due to federal laws. It is paramount to adhere to these regulations to avoid potential fines and legal disputes. Examples of situations where more than four digits might be included are in cases of multiple card transactions on a single receipt.

Card Verification Method (CVM)

The Card Verification Method (CVM) is a security measure used by merchants to verify the cardholder's identity during a transaction. The most common form of CVM is the CVN (Card Verification Number) or CVV (Card Verification Value). The CVM number is typically a three- or four-digit code found on the back or front of the card, although the exact location can vary by region. Including the CVM on the receipt may compromise security, so it is generally not required by the U.S. regulatory standards.

Application Identifier (AID)

The Application Identifier (AID) is a unique code assigned to a specific set of payment applications. It is used to identify the application being used for the transaction, such as EMV (Europay, Mastercard, Visa) or mag stripe transactions. In the U.S., the AID is not typically required on receipts. However, it is important for merchants to be aware of the AID as it may be used for internal record-keeping and fraud detection purposes.

Transaction Validation Result (TVR)

The Transaction Validation Result (TVR) is a response code generated by the payment processor to verify the transaction. This code indicates whether the transaction was approved, declined, or if additional information is required. Including the TVR on the receipt is not mandatory, but it can be useful for merchants to have this information for their internal records and dispute resolution purposes.

Compliance Best Practices

To ensure compliance with U.S. regulations and best practices, merchants should:

Clearly display the card holder's name and the last four digits of the card number. Avoid displaying unnecessary information on the receipt, particularly the expiration date and any CVM codes. Use secure methods to handle sensitive card information and ensure that the receipt is printed clearly and legibly. Train employees on the importance of adhering to these regulations to prevent violations. Maintain consistent and reliable record-keeping practices to support any potential disputes.

Conclusion

Compliance with mandatory technical information on receipts for card-present transactions is critical in the U.S. to ensure consumer protection and transparency. By understanding and adhering to these standards, merchants can avoid legal issues and maintain a positive business reputation. This comprehensive guide provides a clear overview of the essential information that must be included on receipts, helping both new and established merchants navigate the regulatory landscape effectively.