What Is Truncation?

Truncation is the requirement mandated by the Federal Trade Commission (FTC) for merchants to shorten the personal account information printed on cr𒆙edit and deb🍨it card receipts.

Understanding Truncation

Truncation requirements are specified in the 澳洲幸运5开奖号码历史查询:Fair and Accurate Credit Tr✃ansactions Actꦡ (FACTA) of 2003, a law that amended and expanded the Fair Credit Reporting Act of 1970. FACTA had a focus on preventing identity theft by protecting consumers' personal data and sensitive financial information.

Under FACTA, businesses that accept credit or debit cards are prohibited from printing more than the last five digits of the card's number on their receipts. This requirement, which came into effect on December 1, 2006, is designed to help protect customers from credit card fraud and identity theft.

The requirement to truncate card numbers only applies to the receipts that are handed to customers at the point of sale. It does not apply to digital transaction records retained by the merchant. Generally speaking, merchants retain a separate copy of all receipts that contain the customer's full 澳洲幸运5开奖号码历史查询:credit card information. Merchants are permitted to collect and store this information under FACTA, although they must ensure that the records are securely stored and that the privacy of their customers is respected.

Under FACTA, merchants can be liable for damages of up to $1,000 for each violation of the truncation requirement. These damages can be incurred regardless of whether the incident in question actually harmed the customer, a fact which led to numerous individual and 澳洲幸运5开奖号码历史查询:class action lawsuits against com🎃panies of all sizes for truncation violations in the years after the requirement went into effect. Since then, some courts have ruled that there must be proof of actual harm resulting from the violation in order for the merchant to be penalized.

Example of Truncation

Unfortunately, 🤡theft of credit card information continues to 🍷be a major problem, affecting millions of consumers each year.

Thieves can use this stolen information in a variety of ways, such as using it to make online purchases, opening new credit accounts, or simply selling it on the black market.

If not for truncation, thieves could steal most of the information they need for these crimes simply by stealing or f✅inding discarded customer receipts. Truncation makes it much harder for criminals to obtain this information. It is ♌worth noting, however, that the truncation requirement does not apply to manual imprinters or handwritten receipts, making it especially important to securely store or dispose of these types of records.

The Bottom Line

Truncation is a rule that restaurants and other merchants must follow. According to the Fair and Accurate Credit Transactions Act (FACTA) of 2003, which went into effect in 2006, merchants can only print the last five numbers of customers' credit or debit card numbers on receipts. If merchants don't shorten customers' credit or debit card numbers, they will be in violation of FACTA and potentially face a $1,000 fine per violation if the customer can prove that the lack of truncation caused them harm.