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.

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 Ffile), 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:

For A list of Truncation Laws by State (Click This link)

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. You can see more details by clicking on A list of Truncation Laws by State. Please contact your legislative branch for clarification, as we are only able to "pass on" their information.

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:

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.

For More Important Information:
	Visit Visa web site
	Visit MasterCard web site
	Visit Discover web site
	Visit American Express web site