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.