PAN truncation is an anti-fraud measure available on some credit-card-processing
point of sale
The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice f ...
(POS) 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
The asterisk ( ), from Late Latin , from Ancient Greek , ''asteriskos'', "little star", is a typographical symbol. It is so called because it resembles a conventional image of a heraldic star.
Computer scientists and mathematicians often voc ...
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 is an inclusive term for fraud committed using a payment card, such as a credit card or debit card. The purpose may be to obtain goods or services or to make payment to another account, which is controlled by a criminal. The P ...
(and
debit card
A debit card, also known as a check card or bank card is a payment card that can be used in place of cash to make purchases. The term '' plastic card'' includes the above and as an identity document. These are similar to a credit card, but u ...
fraud), which is increasing worldwide, particularly in a global market where "
card not present
A card-not-present transaction (CNP, mail order / telephone order, MO/TO) is a payment card transaction made where the cardholder does not or cannot physically present the card for a merchant's visual examination at the time that an order is given ...
" (CNP) transactions are increasingly
popular over the
Internet, by
mail, and by
telephone.
See also
*
Tokenization (data security)
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