Definition of Truncation:

  1. Accounting: Dropping some or all significant digits right of a decimal point.

  2. Computing: Cutting off the end of a number string that is too large to fit in the available memory, or an image or text that is too large for the available space.

  3. Database search: Ability of some search engines to locate related terms from a root keyword and a wildcard (such as an *). For example, entering manage* will return pages that contain the terms manageable, management, manager, and manageress.

  4. Banking: Shortening of check processing cycle by safekeeping the paid checks instead of returning them to their respective writers (drawers).

  5. Truncation is the requirement mandated by the Federal Trade Commission (FTC) for merchants to shorten the personal account information printed on credit and debit card receipts.

  6. Truncation requirements are specified in the Fair and Accurate Credit Transactions Act (FACTA) of 2003, a law that amended and expanded the Fair Credit Reporting Act of 1970. FACTA had a focus on preventing identity theft by protecting consumers’ personal data and sensitive financial information.

Meaning of Truncation & Truncation Definition