Is Your Credit Card Terminal Legal?

Credit Card Truncation is the ability of a Credit Card Machine to Remove all but the last 4 digits of a Credit Card number and the expiration date from the sales receipt. Here is an example of a Truncated and an un Truncated Receipt.

Truncated Receipt. Acct# - **** **** **** 9999 Exp ****

Un truncated Receipt. Acct# - 1234 5678 9000 0000 Exp 00/00

If the receipt. resembles the example on the right, or the expiration date is printed on the receipt, then the receipt is not being truncated.

These Machines are no-longer allowed by Visa and Mastercard

• Verifone Zon Jr
• Verifone Zon JR XL
• Linkpoint 4000
• POS 50
• POS 500

Why is Truncation Important?

Truncation is important to protect the customer from losing their credit card number if they lose their receipt. It protects both the merchant and the customer by not allowing the Credit Card Number to be printed and therefore preventing fraudulent situations.

Why Should I be Truncating?

Besides the reason aforementioned, It is a pending federal law not to be truncating credit card transactions.

Effective July 1, 2003 all terminals being activated, must have and use their truncating capabilities. The Visa/Mastercard Penalties for failing to Truncate are as follows:

• 1st Violation - $5,000
• 2nd Violation - $10,000
• 3rd Violation - $25,000
• 4th Violation - $50,000
• Willful or Egregious Violation - $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. As of Jan, 1 2004 - 8 States will require all Processing Machines to Truncate Credit Card Transactions, and other states are soon to follow.

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 Terminated Merchant File, which will prevent them from accepting credit cards in the future.

What can I do to ensure that I am Truncating?

You can call our highly skilled department that will be able to determine if your current machine is Truncating or if it has the ability to Truncate. Many processing machines can still truncate if properly programmed.

If you would like more information on Credit Card Truncation, would like to purchase a compatible machine or would like to start a merchant account, please give us a call. We sell only 100% truncation compatible machines and chances are we will save you money on your Credit Card Processing. We will be more that happy to answer all of your questions and meet your processing needs.

Why has my Credit Card Machine been shut off?

Many Credit Card Processing Banks have not informed their customers about the laws and regulations of Credit Card Truncation. But, these agencies have to adhere to Visa and Mastercard Regulations associated with Credit Card Truncation. They have no choice but to disable any machines that will not perform Credit Card Truncation. Many machines such as the Verifone Tranz 330, can still Truncate Credit Cards when signed up with the right processing bank. If you have a Verifone Tranz 330 that has recently been disabled due to Credit Card Truncation, we can get you processing again, with the same machine, in just a few days. Why purchase a new machine when you can continue to use your Current Credit Card Machine. The Verifone Tranz 330 will Truncate Credit Card Receipts when operating on the right platform.

Alabama Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Alaska Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Arizona Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
44-1367	Law	6/1/2002	6/1/2004	$10,000/incident
Arkansas Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
HB1269	Law	1/1/2004	1/1/2004	None Specified
California Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
Civil-747	Law	1/1/2001	1/1/2004	None Specified
Colorado Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
HB02-144	Law	1/1/2004	1/1/2004	Civil Penalties from Cardholder
Connecticut Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Delaware Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
SB 11	Law	1/1/2004	1/1/2005	$575/incident
Florida Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
1020	Law	7/1/2003	7/1/2005	$250 1st/ $1000 each subsequent incident
Georgia Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
HB 213	Bill			N/A
Hawaii Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Idaho Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
HB 134	Law	7/1/2003	7/1/2003	$250-1st / $1000 each subsequent incident
Illinois Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
HB259	Bill	1/1/2004	1/1/2005	N/A
Indiana Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Iowa Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Kansas Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
HB 2676	Law	7/1/2003	7/1/2004	Unconscionable act KSA 50-267
Kentucky Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
HB 70	Bill	1/1/2004	1/1/2006	Class D Felony
Louisiana Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
Act 584	Law	1/1/2002	1/1/2004	Actual damages to CardHolder and Issuer
Maine Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
LD 1880	Law	1/1/2004	1/1/2004	Civil Penalty $250 / $1000
Maryland Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
SB25	Law	10/1/2002	1/1/2006	None Specified
Massachusetts Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Michigan Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
5435	Bill	6/1/2002	6/1/2005	$5000 per day / $25000
Minnesota Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
SB506	Bill	1/1/2004	7/1/2006	None Specified
Mississippi Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Missouri Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
SB 292	Bill	1/1/2003	1/1/2005	Class A Misdemeanor
Montana Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Nebraska Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
HB 276	Law	1/1/2004	1/1/2007	Class III Misdim / Class I Misdim
Nevada Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
SB 297	Law	10/1/2003	1/1/2008	None Specified
New Hampshire Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
New Jersey Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
S1149	Law	1/1/2004	1/1/2004	None Specified
New Mexico Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
SB 253	Law	1/1/2004	1/1/2004	None Specified
New York Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
A5973	Bill	1/1/2002	1/1/2005	$250/$1000
North Carolina Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
HB 357	Bill			None Specified
North Dakota Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
SB 2037	Law	1/1/2004	1/1/2007	None Specified
Ohio Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
250	Law	7/1/2004	7/1/2004	Civil Penalties from Cardholder
Oklahoma Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
SB 931	Law	1/1/2004	1/1/2007	None Specified
Oregon Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
HB 2103	Bill			None Specified
Pennsylvania Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
348	Bill	60 days from signing	60 days from signing	Civil Penalties from Cardholder
Rhode Island Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
S2031	Bill	1/1/2003	1/1/2005	Actual damages + legal costs
South Carolina Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
South Dakota Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Tennessee Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Texas Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
SB 235	Bill	9/1/2003	1/1/2006	$500 per month
Utah Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
SB 6	Law	1/1/2004	1/1/2004	$1000 /incident
Vermont Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Virginia Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
SB 140	Law	7/1/2003	7/1/2005	Actual damages + legal costs
Washington Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
HB 2410	Law	7/1/2001	7/1/2004	$1,000 / incident
Washington, D.C. Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
West Virginia Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A
Wisconsin Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
365	Bill	1/1/2005	1/1/2005	None Specified
Wyoming Credit Card Truncation
Bill#	Current Status of Truncation Regulations	Date New Terminals Must be Compliant	Date Existing Terminals Must be Compliant	State Penalties for Non-compliance
None Proposed	N/A			N/A