How Long Should A Business Keep Credit Card Receipts?

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How Long Should A Business Keep Credit Card Receipts?

Three Question to Ask Merchant Processors

A common question Business Owners in Orlando ask us is “How long should I keep my credit card receipts?”


The answer is 18 months. The reason is because a cardholder is able dispute their credit card transactions during this time period but after 18 months, all credit card transactions are final.

What happens when a customer disputes a transaction within the 18 month period?

After a cardholder calls their credit card bank to dispute a particular transaction, your merchant services company will then notify you with rebuttal instructions. This process where your credit card provider requests specific documentation based on the card holders reason for the dispute is called a chargeback.

In order for you to have a chance at over turning the disputed transaction, it is mandatory that you have a copy of the signed receipt. Also, having your return policy clearly stated on the receipt will go a long way in your favor.

Feel free to Contact Us and we will be glad to help you put your return policy on all future receipts.

Storing Receipts

While storing your receipts we recommend that you keep them in fire proof locked safe.

Destroying Receipts

After 18 months when you destroy your receipts, we recommend that you put them through a shredder for payment card compliance reasons.

End Of Year 1099 Tax Report

Since 2011, the IRS has required that income received through credit and debit card payments must be reported. They require that your merchant services company sends a report of your total annual payments processed by credit and debit cards directly to the IRS as well as to you the Merchant.

This report comes shortly after years end in the form of a 1099. It shows you what your credit and debit card sales were for the year and breaks it down by each month. This type of reporting along with the monthly statements that are generated by your merchant services company are sufficient enough for your records for you to feel comfortable disposing of your credit card receipts ater 18 months.

 Importance of EMV

Since October 2015, it has become imperative for merchants to have the ability to accept their customers EMV chip credit cards in order to reduce certain types of chargebacks. By processing the chip on the credit card versus the magnetic stripe, banks will actually cover the loss on certain types of chargebacks initiated from fraud.

If you have any further questions please contact us and we will be glad to help. Also, if you’re interested in the type of equipment we provide our clients you can find out more by clicking here.


Here is a short YouTube video going over this blog post:


Donnie Troy
Donnie Troy
1Quest Payment’s mission is to help as many merchants as possible find the best credit card processing solution so they can focus their time and energy on growing their business. Contact Donnie today, call 1.800.413.7573 or use our contact form