Truncation

Truncation is a security measure used to protect cardholder information by permanently removing a portion of the Primary Account Number (PAN) from stored data. This method is particularly effective in ensuring that sensitive payment card information is not fully visible or accessible when stored in files, databases, or other digital storage systems. By truncating the PAN, only a portion of the number is retained—usually the last four digits—while the rest is permanently deleted.

The main purpose of truncation is to reduce the risk of cardholder data being compromised in the event of a data breach. Since the full card number is not stored, it minimizes the potential damage and liability that could arise from such incidents. Truncation is often implemented as part of a broader data security strategy that complies with industry standards, such as the Payment Card Industry Data Security Standard (PCI DSS), which provides guidelines on how sensitive payment card information should be handled and protected.

Truncation differs from masking, which is another method used to protect PAN data. While truncation involves permanently removing part of the data, masking simply covers up the data when displayed on screens, printed receipts, or other outputs, ensuring that the full PAN is not visible. Masked PANs are often shown with only the last few digits visible, with the rest replaced by asterisks or other placeholder characters.

Both truncation and masking are essential techniques in protecting sensitive payment information from unauthorized access and reducing the risk of fraud. Businesses handling cardholder data are encouraged to implement these methods to enhance their data security measures and maintain compliance with regulatory requirements.