PAN truncation is an anti-fraud measure available on some credit-card-processing point of sale (POS) terminals as part of a

merchant account A merchant account is a type of bank account that allows businesses to accept payments in multiple ways, typically debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for t ...

service. "PAN" is an acronym for

primary account number A payment card number, primary account number (PAN), or simply a card number, is the card identifier found on payment cards, such as credit cards and debit cards, as well as stored-value cards, gift cards and other similar cards. In some situati ...

, i.e., the "card number" on either a

debit Debits and credits in double-entry bookkeeping are entries made in account ledgers to record changes in value resulting from business transactions. A debit entry in an account represents a transfer of value ''to'' that account, and a credit ...

or a

credit card A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...

. ''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 asterisks. 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 worldwide, particularly in a global market where " card not present" (CNP) transactions are increasingly popular over the

Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, pub ...

, by

mail The mail or post is a system for physically transporting postcards, letters, and parcels. A postal service can be private or public, though many governments place restrictions on private systems. Since the mid-19th century, national postal sys ...

, and by

telephone A telephone is a telecommunications device that permits two or more users to conduct a conversation when they are too far apart to be easily heard directly. A telephone converts sound, typically and most efficiently the human voice, into e ...

Notes

References

* {{cite web, url=http://searchfinancialsecurity.techtarget.com/definition/PAN-truncation, title= PAN truncation (primary account number), author=Margaret Rouse, publisher=techtarget.com Fraud Payment systems

See also

Notes

References