Credit card truncation is the ability of a credit card machine to remove all but the last 4 or 5 digits of a Credit Card number and the expiration date from the sales receipt. What do truncated receipts look like? Here is an example of a VAILD truncated customer receipt.
Truncated Customers Receipt
The full credit card number is NOT displayed and the Expiration date is NOT displayed or displays as XX/XX.
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Truncated Customers Receipt
On the merchant's copy of the receipt, the customer provides their signature. The FULL credit card number is displayed and the expiration date is displayed.
Merchant's copies ONLY will have this information.
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If the CUSTOMERS receipt displays the full credit card number or the expiration date is printed on the receipt, then the receipt is not being truncated. By current Visa and MasterCard regulations it is only required for the customers copy of the receipt to be truncated. This means that if you are using a terminal or software program that only truncated the customers receipt, this is still ok.
The account truncation
laws require that no more than the last four digits of the credit card
number can be printed on the customer copy of the receipt. In addition,
the card expiration date must be blocked. Truncation cannot be turned
off as an option.
The individual states
have implemented penalties and fines that vary by state, but can be as
severe as $10,000 per transaction and include felony charges. The bankcard
associations have not yet defined specific penalties for noncompliance,
but we do know that the General Operation Regulation Violation rules are
usually applied. You can find more information at web sites of the credit card providers.
We believe that a majority of merchants are compliant and most will not need to upgrade equipment. However, there are some terminal types that will not have complaint truncation applications.
Please call us directly for information on upgrading to a compliant point-of-sale unit. 1-800-313-5198.
All it takes is one dissatisfied customer or credit card company agent to report an un-truncating establishment and the business can be penalized and shut down, and the merchant may be placed on the MATCH file (also known as the Terminated Merchant File), which will prevent them from accepting credit cards in the future.
July, 1 2006 - All new and existing terminals must be compliant.
MerchantSource® offers compliant credit card equipment at reasonable prices. Please
don't be fooled by sales people who say that your equipment is
non-compliant, check around.
These processing methods are no-longer are allowed by Visa and MasterCard:
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Credit card processing Software |
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How does it affect me - the merchant? |
It is the merchant’s
responsibility to ensure that they are in compliance with the laws of
the states in which they process. You must contact your existing merchant
services provider (your processor) if you have a compliant machine to
have them download updated software into your equipment - this should
be a FREE download, at no cost to you. If not, we are happy to provide
you with an alternative merchant services provider.
Understanding the
credit card truncation laws can be confusing. Some states have Bills pending others have now made it Law. Some
states still have No Bills pending
and do not have any information about doing so. We have attempted to give
you a brief overview.
Please
contact your legislative branch for clarification. Effective July 1, 2003 all terminals being activated, must have and use their truncating capabilities.
Visa/MasterCard penalties for failing to truncate can be as high as follows:
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$ 5,000 |
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$10,000 |
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$25,000 |
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$50,000 |
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$500,000 / month |
These are just the Visa/MasterCard penalties; there are federal and state penalties that may also be collected. State penalties vary, but can be up to $10,000 per transaction and can have felony charges associated with them.
Some states have already
passed Truncation laws. Please see your respective states legislative
branches for further information.
How do I obtain truncation compliant equipment? |
Credit card Merchant Service providers are requirement to adhere to Visa and MasterCard Regulations associated with credit card truncation. These organizations also face large fines if their merchants are not in compliance with these strict regulations.
Unfortunately, those merchants whom have experienced that their processing equipment or software just stops working only to find out one of the reasons was that they were currently processing on non-compliant products.
The Merchant Service provider then had no choice but to disable any machines that will not perform credit card truncation.
MerchantSource® only retails 100% truncation compliant equipment.
MerchantSource® has partnered with a leader in the bankcard processing industry to offer merchants whom find that their equipment or software does not meet the compliance requirements, the opportunity to participate in a FREE! Terminal Placement Program.
MerchantSource® believes in Delivering Service...Beyond Expectation. We look forward to answering all of your questions about credit card equipment or software and our Affiliate Partners Free! Terminal Placement Program which includes a full merchant services program.
Please call us directly for information on upgrading to a compliant point-of-sale unit. 1-800-313-5198.
Interested in a Full Service Merchant Account? |
Free equipment is this possible?
Read more about this exciting program.
Disclaimer
This page is for informational purposes only and not intended to replace or change any current Bankcard Association or Merchant Service Provider rules or regulations. Check with your current merchant services provider for assistance in relation to any concerns you have.
*Content of this site subject to change without any prior written or expressed notification. |
