Credit Card Industry Information
One of the goals of this website is to provide useful information about the industry of credit cards.
Have you ever wondered what actually goes into a credit card number?
Credit Card Numbering :
The first digit tells the type of card. Generally (but not always) the number scheme is:
3 - travel or entertainment cards - these were usually thought of to be Diner Club or American Express. In the traditional sense of credit cards these cards were usually associated with the business traveler. However, in present times that is certainly not the case, with VISA and MasterCard having wide acceptance in many parts of the world.
4 - VISA
5 - MasterCard
6 - DISCOVER card
Following the first digit respectively:
VISA - Digits 2 to 6 are the bank identification number (commonly called the BIN). Digits 7 to 12 or 7 to 15 is the account number (yes, you actually are classified as a credit card account holder at the bank that is issuing the credit card). The last digit is called a check digit, calculated based on an formula over the previous digits of the card. Most VISA cards are 16 digits in length.
American Express - Digits 3 and 4 represent the type of card and currency. Digits 5 to 11 are the account number. Digits 12 to 14 are the card number within the account number and digit 15 is the check digit.
MasterCard - Typically digits 2 to 6 is the bank identification number, similar to VISA. Although with MasterCard that number can be shorter. The digits after the BIN to digit 15 is the account number. Digit 16 is a check digit.
The MAG (magnetic) Stripe on the Credit Card or Debit Card
The magstripe of a credit card or debit card it made of iron based magnetic particles that can actually be written to and hold information. There is a uniform standard that banks must follow called the ISO/IEC 7811 standard.
The magstripe can have 3 parts to contain the information, and these are called tracks.
Track 1 is 210 bpi (bits per inch) and contains read only characters
Track 2 is 75 bpi and this is where your most common information is stored. The card number, expiration date, and emboss name is in this area.
Track 3 is 210 bpi but this track is not widely used.
Card Information is captured several ways:
Electronic Data Capture (EDC) - Is the most common way to use a credit card or debit card. This is where the cardholder or merchant swipes the card in the terminal where they checkout. Data read off the track as well as the amount of the purchase is then transmitted electronically to one of the major networks (VISA, MasterCard, etc) for authorization.
Virtual Terminals - These are widely associated with credit card use over the internet. This is where the credit card holder inputs information on a screen or web page and clicks the SUBMIT button to send the transaction for approval.
Voice Authentication - Where the merchant calls to get a pre-approval for the amount of the purchase and then fills out a manual slip to complete the purchase. These are commonly referred to as zip-zap machines. While not as common today as in years past, this method may still be used by merchants who do not process a high volume of debit card and credit card transactions.
SMART CARDS
Smart Cards have actually been around for over 10 years, but they are rapidly growing in popularity as credit card issuers try and stay one step in front of the fraudsters. These cards are also known as chip cards.
In a smart card, a computer chip is embedded in the actual credit card plastic that stores and transacts data between two endpoints. Certain data is stored on the chip in the card and the data is transacted via a reader that is part of some computer system, such as an ATM.
Smart cards greatly improve the security of any transaction. Smart cards are much more difficult to duplicate and because data and information can be stored on the chip of the card, they ensure the integrity of the end user.
It is expected that chip credit cards will be emerging in the credit card markets of the United States in the upcoming years. So far they have not been able to gain an advantage over the normal credit cards, but mandated changes by the 2 major networks, VISA and MasterCard, will help chip cards enter the United States market in the near future.
PCI Data Security Standard (PCI DSS)
PCI stands for Payment Card Industry. The PCI Security Standards Council is a council that defines certain rules for the payment cards industry (debit and credit cards) that are consistent on a global basis. The council is comprised of representatives from American Express, Discover Financial Services, JCB International, MasterCard, and VISA.
PCI DSS is a movement aimed at protection transaction/account data and personal information. It includes requirements for security management, data handling, data storage, network architecture, and software design.
Have you ever wondered what actually goes into a credit card number?
Credit Card Numbering :
The first digit tells the type of card. Generally (but not always) the number scheme is:
3 - travel or entertainment cards - these were usually thought of to be Diner Club or American Express. In the traditional sense of credit cards these cards were usually associated with the business traveler. However, in present times that is certainly not the case, with VISA and MasterCard having wide acceptance in many parts of the world.
4 - VISA
5 - MasterCard
6 - DISCOVER card
Following the first digit respectively:
VISA - Digits 2 to 6 are the bank identification number (commonly called the BIN). Digits 7 to 12 or 7 to 15 is the account number (yes, you actually are classified as a credit card account holder at the bank that is issuing the credit card). The last digit is called a check digit, calculated based on an formula over the previous digits of the card. Most VISA cards are 16 digits in length.
American Express - Digits 3 and 4 represent the type of card and currency. Digits 5 to 11 are the account number. Digits 12 to 14 are the card number within the account number and digit 15 is the check digit.
MasterCard - Typically digits 2 to 6 is the bank identification number, similar to VISA. Although with MasterCard that number can be shorter. The digits after the BIN to digit 15 is the account number. Digit 16 is a check digit.
The MAG (magnetic) Stripe on the Credit Card or Debit Card
The magstripe of a credit card or debit card it made of iron based magnetic particles that can actually be written to and hold information. There is a uniform standard that banks must follow called the ISO/IEC 7811 standard.
The magstripe can have 3 parts to contain the information, and these are called tracks.
Track 1 is 210 bpi (bits per inch) and contains read only characters
Track 2 is 75 bpi and this is where your most common information is stored. The card number, expiration date, and emboss name is in this area.
Track 3 is 210 bpi but this track is not widely used.
Card Information is captured several ways:
Electronic Data Capture (EDC) - Is the most common way to use a credit card or debit card. This is where the cardholder or merchant swipes the card in the terminal where they checkout. Data read off the track as well as the amount of the purchase is then transmitted electronically to one of the major networks (VISA, MasterCard, etc) for authorization.
Virtual Terminals - These are widely associated with credit card use over the internet. This is where the credit card holder inputs information on a screen or web page and clicks the SUBMIT button to send the transaction for approval.
Voice Authentication - Where the merchant calls to get a pre-approval for the amount of the purchase and then fills out a manual slip to complete the purchase. These are commonly referred to as zip-zap machines. While not as common today as in years past, this method may still be used by merchants who do not process a high volume of debit card and credit card transactions.
SMART CARDS
Smart Cards have actually been around for over 10 years, but they are rapidly growing in popularity as credit card issuers try and stay one step in front of the fraudsters. These cards are also known as chip cards.
In a smart card, a computer chip is embedded in the actual credit card plastic that stores and transacts data between two endpoints. Certain data is stored on the chip in the card and the data is transacted via a reader that is part of some computer system, such as an ATM.
Smart cards greatly improve the security of any transaction. Smart cards are much more difficult to duplicate and because data and information can be stored on the chip of the card, they ensure the integrity of the end user.
It is expected that chip credit cards will be emerging in the credit card markets of the United States in the upcoming years. So far they have not been able to gain an advantage over the normal credit cards, but mandated changes by the 2 major networks, VISA and MasterCard, will help chip cards enter the United States market in the near future.
PCI Data Security Standard (PCI DSS)
PCI stands for Payment Card Industry. The PCI Security Standards Council is a council that defines certain rules for the payment cards industry (debit and credit cards) that are consistent on a global basis. The council is comprised of representatives from American Express, Discover Financial Services, JCB International, MasterCard, and VISA.
PCI DSS is a movement aimed at protection transaction/account data and personal information. It includes requirements for security management, data handling, data storage, network architecture, and software design.