What does truncated mean in banking?
According to the Merriam-Webster dictionary, the word truncate means to shorten, as if by cutting off. In the banking and finance industry, check truncation is the terminology used to describe the physical removal of paper checks from payment and deposit processes.
What role does the truncating bank serve?
banking service in which cancelled checks or drafts are held by the customer’s bank, or by another bank in the check collection sys-tem, and are not returned to the check writer with the account statement. You can use it the same way you would use the original check.” …
What does it mean when a check is truncated?
The term “truncate” means to remove an original paper check from the check collection or return process and send to a recipient, in lieu of such original paper check, a substitute check or, by agreement, information relating to the original check (including data taken from the MICR line of the original check or an …
What does truncation mean?
Definition of truncate (Entry 1 of 2) transitive verb. 1 : to shorten by or as if by cutting off. 2 : to replace (an edge or corner of a crystal) by a plane.
What is truncated account?
(5) “Truncated account” means a checking, negotiable order of withdrawal, or similar deposit account for which the original checks drawn on the account are not returned to the customer on a regular basis.
What is the difference between truncated Cheque and electronic cheque?
In cheque truncation the physical movement of a paper cheque issued stops and electronic flow begins while the electronic cheque is issued electronically and no paper is involved. The processing is done on the basis of this truncated cheque and physical cheque is stored. MICR data is very useful in check truncation.
Who regulates the CRA?
Three federal regulators—the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation (FDIC), and the Board of Governors of the Federal Reserve System—share an oversight role with respect to the CRA.
What are Check 21 checks?
Check 21 is a federal law that is designed to enable banks to handle more checks electronically, which should make check processing faster and more efficient. Today, banks often must physically move original paper checks from the bank where the checks are deposited to the bank that pays them.
What does truncated mean in property?
shortness
act of decreasing in length. the property of being truncated or short. synonyms: shortness.
What is the purpose of truncate?
TRUNCATE TABLE removes all rows from a table, but the table structure and its columns, constraints, indexes, and so on remain. To remove the table definition in addition to its data, use the DROP TABLE statement.
What is truncated card number?
“Card Truncation” is the ability of a terminal to mask or hide all but the last few digits of a card number on a receipt.
What is truncation return?
Return of checks for customers with truncated checking accounts. (5) “Truncated account” means a checking, negotiable order of withdrawal, or similar deposit account for which the original checks drawn on the account are not returned to the customer on a regular basis.