Wednesday, June 12, 2019

Understanding Your Credit Card Number


If you’re like most people, then you have a credit card. And, also if you’re like most people, you probably don’t really understand how that credit card works or even what the numbers mean. And, while it’s not absolutely necessary for you to understand this information, it can be fascinating!  



The Basics of Credit Cards

First of all, all credit card account numbers are made up of three different features. These numbers, sometimes referred to as primary account numbers, provide information about who issued the card, the account the card is connected to, and the checksum.

The Card Issuer

If you look at the very first number on your credit card, this number is what is referred to as an “industry identifier.” In other words, it provides information about who issued your card and what industry the issuer is in. Next, there are six to eight digits which provide more detailed and exact information about who issued the card.

Your Account

Once the card issuer information is out of the way, all of the other numbers, except for the very last digit, are directly linked to you and your account. They provide information about the account itself, how much is available within it, and more.

The Checksum

The final digit of your credit card is what is known as a “checksum.” It exists to allow people running the card to ensure that the card and card number are valid. A sophisticated algorithm is used by payment processors to determine the validity of the card. Unfortunately, however, this system is not yet perfect, and people sometimes figure out the algorithms in order to generate card numbers that register as valid even though they are not.

As you can see, there is more to credit card numbers than you might have realized. And, since you now know that card numbers, as complex as they may be, are not perfect, hopefully you can take even greater care with protecting your card information.

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