Debit/Credit Card & Draft info

by Irma
(Midland TX )

How long does a business need to keep Debit/Credit card and Bank account & routing information for?

We have this billing info for accounts that are closed now and others that have died and moved away.

Our bookkeeper does not want to part with this info.


Hi Irma!

You don't mention what type of business you run, so I'm not sure if you have local customers that come into a shop or if you have internet customers that buy online, but I'll try to take a stab at this.

When you take customer information for payments, you should not keep their credit card/bank info on file unless you have a lot of security, because of identity theft issues. It might not be your employee that would take the info and use it, but someone could hack into your computer system and steal banking info on your customers. You should protect yourself from this.

That said, if you have local customers and they expect you to automatically charge them, just explain why it's not to their benefit for you to do that (identity theft).

If you take credit cards or checks from customers on a regular basis, you should still not keep this info.

Regarding old accounts, shred all the pertinent customer information.

I would be more than curious as to why your bookkeeper thought they needed to keep this info. Your invoices have been paid. You don't need the card/bank info any longer.

Some businesses have remote scanners from their bank, and make bank deposits with customer checks right at their desk. These checks should be shredded within 30-60 days.

I hope this helps!


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