PAN truncation
Encyclopedia
PAN truncation is an anti-fraud measure available on some credit-card-processing POS (point of sale
) terminals as part of a merchant account
service.
"PAN" is an acronym for Primary Account Number, i.e., the "card number" on either a debit
or a credit card
. PAN truncation simply replaces the card number printed on a customer receipt with a printout of only the last four digits, the remainder being replaced usually by asterisk
s. This hides the card number from anyone who obtains the receipt when discarded, or by other means, while still allowing a card holder with multiple cards to identify which was used, and thus accurately record the transaction.
PAN truncation is a measure to combat credit card fraud
(and debit card
fraud), which is increasing dramatically worldwide, flourishing particularly in a global market where CNP (customer not present) transactions are increasingly popular over the Internet
, by mail
, and by telephone
.
Point of sale
Point of sale or checkout is the location where a transaction occurs...
) terminals as part of a merchant account
Merchant account
A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of credit card and/or debit card transactions...
service.
"PAN" is an acronym for Primary Account Number, i.e., the "card number" on either a debit
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
or a credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
. PAN truncation simply replaces the card number printed on a customer receipt with a printout of only the last four digits, the remainder being replaced usually by asterisk
Asterisk
An asterisk is a typographical symbol or glyph. It is so called because it resembles a conventional image of a star. Computer scientists and mathematicians often pronounce it as star...
s. This hides the card number from anyone who obtains the receipt when discarded, or by other means, while still allowing a card holder with multiple cards to identify which was used, and thus accurately record the transaction.
PAN truncation is a measure to combat credit card fraud
Credit card fraud
Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account. Credit card fraud is also...
(and debit card
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
fraud), which is increasing dramatically worldwide, flourishing particularly in a global market where CNP (customer not present) transactions are increasingly popular over the Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
, by mail
Mail
Mail, or post, is a system for transporting letters and other tangible objects: written documents, typically enclosed in envelopes, and also small packages are delivered to destinations around the world. Anything sent through the postal system is called mail or post.In principle, a postal service...
, and by telephone
Telephone
The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...
.