Credit card explained: Credit card has emerged as one of the most important payment tools in the era of digital revolution. Then whether it is necessary to pay the necessary bills, or shopping. But, have you ever wondered what is the number of 15 or 16 digits recorded on your credit card? It is not just a random number, but a series fixed under a fixed pattern. Every number of this tells any special information. Similarly, expiry date and CVV have their own special importance.
How is the number of credit cards decided?
Credit card number is divided into three parts. Let’s understand it in detail:
1. Issuer Identification Number (IIN)
6 to 8 marks of the introduction of credit card number are called IIN or BIN (bank identification number). They identify the bank or financial institution that has issued the card. Through this, it can be easily found that the credit card has been issued from HDFC, SBI, Axis Bank or any other bank.
2. Account Number
The subsequent marks are unique identity of the card holder’s account. This part ensures that the transaction is from the account of the person concerned. This becomes a very important number in terms of security.
3. Check Digit:
The last issue is called ‘check digit’. It checks the validity of the entire number through a particular type of Mathematical algorithm (eg Luhan algorithm). Its purpose is to make fake card numbers out of identity.
Why is the expiry date necessary?
Each card has an expiry date printed in a mm/yy format. This is the date after which the card is not valid. The card holder then has to get a new card from the bank. There are two major reasons for this:
- Due to expiry date, the credit card is updated with new safety features from time to time. This makes it difficult for hackers to steal card details.
- Credit card magnetic strip, chip like physical condition also has a limit to stay. Therefore, the card is changed every few years.
CVV: first wall of online security
There is a code of three or four digits behind the credit card, called CVV (Card Verification Value) or CVC (Card Verification Code). This code certifies the physical presence of cards in online transactions.
The CVV is not stored in the magnetic strip or chip of the card. Therefore it is difficult to steal. This is the reason that CVV is essentially sought during online payment, so that if the cyber criminal has stolen the online details, it does not know the CVV.
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