Credit Card Security Standards Built In For Secured Transactions

Credit Card Security Standards Built In For Secured Transactions

The major advantage of credit cards is the increased security they provide.Over the past few decades, payment security has become a top concern for businesses of all shapes and sizes — especially those in the food and hospitality industries.Followingcredit card security features are incorporated in almost all credit cards.

 

Credit card numbers fall under identification card standards set by the International Organization for Standardization and International Electrotechnical Commission. As a result, a straightforward formula dictates the format.Credit card account numbers, also known as primary account numbers (PANs), consist of three main components:

 

1.Information about the card issuer

 

2.Your account information

 

3.A check digit

 

1.All cards have a signature panel, expiration date, magnetic strip, and unique account number.Credit cards must be signed according to credit card issuer terms. Merchants can refuse to accept cards if the signature box is empty.

2.Three-digit code (Security Code ) on the back of the credit card is required for processing any “card not present” transactions. It’s also known as a CVV — “card verification value.”

3.Unlike cards with only magnetic stripes, chip cards(EMV ) encrypt information at each transaction, making fraud much more difficult.

4.Holograph come standard on most credit cards, and are unique to the card network.

Credit Card Security Standards-Significance

1.Credit card Number (account Number)-A credit card number is the long set of digits displayed across the front or back of your plastic credit card. It is typically 16 digits in length, often appearing in sets of four. Sometimes it can be as long as 19 digits, and it is used to identify both the credit card issuer and the account holder.

 

1.The first digit of your card is an industry identifier, which indicates the type of business the issuer of your card is involved in or, in some cases, outright identifies the type of credit card, such as Visa or Mastercard

 

2.Issuer identification number: The next six to eight digits are an issuer identification number (IIN), which is also called a bank identification number (BIN). That number specifies which financial institution issued your card.
Under the direction of the ISO/IEC, all issuers of credit cards are transitioning from a six-digit IIN or BIN to an eight-digit one. This change was made to increase the number of potential IINs/BINs and prevent a shortage of them

3.Account Information:The remaining digits, except for the last digit, are unique to your specific credit card account. They are selected by the issuer

4.Check Digit:The last digit of a 16-digit PAN is the check digit—an essential part of a checksum, which helps to ensure that a credit card number is valid. The check digit is not selected by the credit card issuer but is determined mathematically based on the Luhn algorithm

1. EMV is designed to prevent fraud:EMV cards are primarily designed to prevent fraudulent transactions that take place when someone physically swipes a counterfeit card at a payment terminal. And chip card technology works. In countries that have adopted EMV as the standard, certain types of credit card fraud have dramatically declined.

2.Chip and Pin credit cards have sophisticated encryption:Magnetic-stripe cards broadcast bank information into the payment terminal as-is. Square Reader and Stand keep this information safe by encrypting it as soon as it’s received. Chip cards are different in that they have sophisticated encryption built right into the chip. When you dip a chip card (it’s a dip instead of a swipe), it talks back and forth with the payment terminal in a secret language to make sure it’s actually you who’s paying.

 

Credit card security by way of EMV credit cards are definitely an upgrade over their magstripe counterparts. But that doesn’t mean you can let your guard down.

 

Overall credit card security is still something to watch out. But with new technologies like the chip and pin credit cards and Apple Pay, the trend is definitely looking up.

Leave a comment