1/2/2024 0 Comments Credit card checksum![]() The first 6-digits of the credit card represent the Issuer Identification Number (IIN), also known as the Bank Identification Number (BIN). The only difference among them is Visa, Mastercard and Discover are always 16 digits while American Express employs a 15-digit format. These standards allow cards to be used worldwide. Accurate transactions would not be possible without the specific sequence of numbers, the precise shape and exact size, all of which adhere to strict standards dictated by the ISO (International Organization of Standardization) and enforced by the ANSI (American Network of Standards Institute). On the front of your credit card, you’ll typically see:Īlthough it may seem random, credit card digits are each strategically placed and represent a vital piece of information. Modern credit cards represent intricate and highly refined history, much of it aimed at protecting consumers against fraud. It is now used by millions of merchants worldwide.Įach of these networks had one goal: to fulfil the consumer’s need to access funds immediately without having to rely on cash. The card grew rapidly in a short period of time. Sears first released the Discover Card in 1985 as a way to expand into the financial market. The smallest of the four major card networks is Discover Card. American Express is currently the third-largest card network on the globe. Fun fact: These primitive cards were made from paper. In 1958, American Express issued its first consumer charge card. By the 1950s, it had grown drastically and expanded into the financial sector. Today this is the second-largest card network in the world.Īmerican Express’s origin story began in 1850 as a small freight forwarding company. In 1979, the card changed its name and became known as Mastercard. Mastercard, known at the time as “Interbank,” appeared in 1966. ![]() By 1974 BankAmericard had expanded into international markets and in 1976 it became known as “Visa Inc.” Small banks responded to Bank of America’s trial balloon, embracing the concept. But by the mid-60s it had turned around, amassing major profits. The first and largest network was originally called the “BankAmericard.” Established in 1958 by Bank of America in an effort to offer a credit product geared toward consumers rather than toward businesses, initially the card flopped. You know them: Visa, Mastercard, American Express and Discover. Four major credit card networks dominate global markets. A credit card is a powerful tool issued by a financial institution such as a bank or credit union allowing you to borrow funds.įinancial institutions use a third-party company called a credit card network to facilitate communication between the terminal of payment and the issuing bank. Yes, even the shape and the substance of the card itself. The Four Major Credit Card Networks: A Brief HistoryĪ credit card is more than a rectangular slip of plastic and metal. How? It all goes back to when the credit card industry was struggling to get customers. Most importantly, the technology behind the number helps prevent fraud, minimizes payment issues and reduces errors. The order of the digits isn’t random but strategically organized, following an international standard.įrom that sequence, you can find out the issuing bank, your account number and more. That lengthy number on the front of your card is packed with crucial information. This helps catch both numbers that are incorrectly entered and fake ones generated by scammers.Have you ever wondered what all those numbers you can never quite memorize stamped across your credit card actually mean? We use our cards daily but most of us have little understanding of the history and objectives they represent. And that last digit? It's called the checksum, and lets people or computers know if the number is valid. The next several digits before the final one, which generally range from seven to 10, comprise your individual account number. For example, the initial digits 414709 mean the card is a Capital One Signature Visa. Together, these tell you which credit card company issued the card and what network it belongs to, plus indicate which benefits it carries for the cardholder. For example, American Express card numbers start with 34 or 37 Discover with 65, 644, 6011.Ī card's MII, plus the five digits following, are called the issuer identification number or the bank identification number. The structure of the card number varies by system. Most consumers will only have credit cards that start with one of these four numbers, unless they have store-specific credit cards, which follow different rules. 3 - Travel and entertainment/American Express or Diners Club.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |