18 Months
This is a very common question most businesses forget to ask once their credit card processing account has been approved and set up. Retaining credit card receipts for too long can become cumbersome and difficult. Retaining credit card receipts for too short a period can expose the business to liability. The main reason your business needs to hold onto the transaction receipt signed by the customer is to fight chargebacks As a company you must keep certain types of paperwork on file, like employment records and invoices, for both business and legal reasons. In some cases a merchant must also keep copies of credit card receipts on hand for a period of time. Learn when it’s safe to toss these receipts in the course of business. If a case arises where the customer disputes the credit card charge from your company, you are responsible, as the merchant, for proving that it is valid. One of the first items the customer’s bank will request is a copy of the credit card receipt related to the transaction. One month. Keep until you get the next statement showing that you paid, unless you need it for tax purposes. Receipts. One month, for purchases such as groceries and restaurant meals, until you match them with your credit card or bank statement. For expensive purchases (jewelry, furniture, appliances), staple the receipt to the owner's manual and keep it as long as you own the item. Once you've purged, separate must-keep papers into three categories: those you need to keep for one calendar year, those you need to keep for a longer period and hard-to-replace documents like birth and marriage certificates. (See chart: What records to keep, how long to keep them .) Then decide on a home for each. The statute of limitations pertaining to customer initiated chargebacks is 18 months from the time the transaction appears on the statements. So, for chargeback purposes it is important to keep you business credit card receipts for 18 month. Retaining credit card receipts for too long can become cumbersome and difficult. Retaining credit card receipts for too short a period can expose the business to liability. 1 If you paid with a debit or credit card, keep those receipts in an envelope or on a receipt stand (basically, a nail on a base) until you've checked to make sure your bank or credit card statement is accurate. Once you've purged, separate must-keep papers into three categories: those you need to keep for one calendar year, those you need to keep for a longer period and hard-to-replace documents like birth and marriage certificates. (See chart: What records to keep, how long to keep them .) Then decide on a home for each. Taxes. The Internal Revenue Service recommends that you keep any documentation of deductions and income for at least three years. Keeping credit card receipts is not mandatory as long as you have other documentation of the sale such as your deposit records from your merchant account or your cash register receipts. If the credit card company sides with the customer and you do not have the receipt to validate the purchase, the company can debit your merchant account for a chargeback. As a merchant who accepts credit cards, you may be overwhelmed with signed receipts. You may know that you need to keep these receipts, but not why or how for long. The answers to these questions are simple, but contain valuable information that all merchants should know and be aware of. Taxes: If taxes are your concern, talking to your accountant will provide you the best and most accurate answers. The IRS recommends that you keep the receipts for at least 3 years, but many accountants will recommend keeping them for even longer, such as 7 to 10 years. A merchant is required to retain legible copies of credit card receipts for up to 18 months in order to satisfy any disputes/chargebacks. These receipts should be kept in a locked file cabinet or safe. After the 18 month period has expired, the credit card receipts should be shredded in order to protect cardholder information (refer to PCI 9.1). Jupiterimages/Polka Dot/Getty Images. Customers have as long as 18 months to dispute charges on their credit card bill. If you do not keep the credit card receipts from sales transactions, your business could be forced to return the money for the purchase to the customer's credit card company. If the credit card company sides with the customer and you do not have the receipt to validate the purchase, the company can debit your merchant account for a chargeback.
http://www.maxxmerchantservices.com/blog/bid/57180/How-long-should-a-business-keep-credit-card-receipts http://www.ehow.com/info_7762398_long-keep-credit-card-receipts.html http://www.creditcards.com/credit-card-news/what-records-keep-how-long-1267.php http://www.maxxmerchantservices.com/blog/bid/57180/How-long-should-a-business-keep-credit-card-receipts http://www.creditcards.com/credit-card-news/what-records-keep-how-long-1267.php http://smallbusiness.chron.com/long-should-business-keep-credit-card-receipts-58801.html http://www.gopai.com/blog/Merchant-Solutions/9/Dear-Merchants-Keep-Your-Receipts http://www.finance.umich.edu/node/2051 http://smallbusiness.chron.com/long-should-business-keep-credit-card-receipts-58801.html
how long should merchant copy credit card receipts be retained