It’s a fact that anyone who has ever made an online purchase using a credit card likely knows all too well: credit cards have a lot of numbers. The credit card number itself can be as long as 19 digits — and those aren’t the only numbers that appear on a person’s card or that a consumer may be asked to provide when making a payment.
Although it might seem like it to anyone who isn’t up on terminology about credit cards, those numbers aren’t random. Each credit card contains unique numbers that provide information about the credit card, offer security, and fulfill other functions. Keep reading to learn what all those numbers on the back (and front) of a credit card actually mean.
How Many Digits Are in a Credit Card Number?
A credit card number — the string of numbers that appear on the front of a card — can be as short as eight digits and as long as 19. Most cards land on the longer side, with 15 to 16 numbers on average. However, there is no defined length for credit card numbers.
Whether long or short, the digits within a credit card number reveal some key information. For instance, they contain embedded information about the card itself, such as the brand of the credit card.
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The First Digit: Major Industry Identifier (MII)
Unless it’s a specialty card, the first digit in a credit card number often reflects the credit card network to which a card belongs. This typically holds true regardless of which bank issued the card.
This means that knowing whether a card is a Visa or Mastercard, for example, can often come down to checking that first digit. In some cases, however, the first digit of a credit card may reflect the industry with which the card is affiliated, as you can see in the table below:
The First Six Digits: Issuer Identification Numbers (IIN)
The next five digits in a credit card number reveal information about the credit card issuer, such as a bank or credit union. Together with the first digit on a credit card, the first six digits together make up the Issuer Identification Number (IIN).
This number indicates what type of credit card it is and where it was obtained. However, because a bank may have different products and brands, a person who looks at a number of credit cards from the same issuer may find that these numbers do indeed vary.
The 7-18 Digits: Account Numbers
While the digits that make up a credit card’s Issuer Identification Number would be the same for any cardholder who has the same type of credit card issued by the same financial institution, that’s not the case with the next group of numbers in the string.
Starting with digit seven, the next numbers — up until the final number — are account identifiers that reflect the cardholder’s unique account. These numbers may or may not be the same as the credit cardholder’s account number. If the two numbers are different, the cardholder should be able to find both when reading a credit card statement, even though only the account identifier would appear on the actual card.
In the event that a credit card is lost or stolen, these numbers would be changed on the replacement card.
Why Do Card Number Lengths Vary?
Because there is no standard length for credit cards, the length of the account number will vary depending on the length of the entire credit card number.
For a typical 16-digit credit card, the account number would consist of nine numbers, comprising digits seven through 15. Because American Express cards only contain 15 digits in the credit card number, the account numbers for those cards are only eight digits long. But if a credit card was, say, just 10 digits long, the account number would only consist of three numbers.
The Final Number: The Validator
The last digit in the string that comprises a credit card number is not part of the account number. Rather, it’s called the validator (and sometimes the checksum or check digit). While this digit doesn’t say much on its own, it functions as a secret check to ensure a credit card number is valid.
The validator works by applying a mathematical formula, called the Luhn algorithm, to all of the digits in a credit card number. Once those numbers are plugged into the formula, the result would be the same as the validator number. If the number is not the same, it suggests that there is an inaccuracy, such as a typo in the credit card number provided or the transposal of two digits.
This algorithm is often embedded in payment processors and not something a cardholder or merchant would check manually.
Numbers on the Back of Your Card
Now that we’ve covered the credit card number, what about all those digits on the back of the card? Here’s what they are and how they’re used.
Expiration Date
The credit card expiration date indicates when a credit card is valid until. This number may appear on either the front or back of the credit card. It consists of a month and a year, and a cardholder may continue to use their card until the last day of the month indicated.
Although a credit card expiration date lets a person know when their card will need to be replaced, it also provides a security function. That’s because if someone is able to illegally obtain another person’s credit card number, they may not also have access to the card’s expiry date.
Often when making a purchase, the requested credit card details will include that date. This may be in a four-digit (month and last two digits of the year) or six-digit (month and all four digits of the year) format. In such instances, if the purchaser is unable to provide both numbers, or enters the wrong expiry date, the authorization would fail.
CVV
There’s another number on a credit card that is also used for security purposes, called the Card Verification Value or CVV. It’s also sometimes called the security code.
The CVV is a random number intended to reduce unauthorized credit card use. It is not the same as one’s security PIN. For most credit cards, this is a three-digit number that appears on the signature strip on the back of the card. American Express cardholders can find their four-digit CVV on the front of their credit card.
Similar to the expiry date, a CVV is information that an unauthorized user would not have if they were able to access a credit card number on its own. If the CVV and credit card number do not match, a transaction (whether for a shopping spree or someone buying bitcoin with a credit card) should fail.
More Secure Technologies
While your various credit card numbers can provide some security, they’re not the only thing keeping your card secure.
Traditionally, credit cards have what’s called a magnetic stripe, or magstripe. This strip is typically located on the back of a card. When the card is swiped, its account number is transmitted to complete the purchase.
However, as this technology has shown security flaws, credit card issuers have started to phase it out. Often cards will also have a smart chip, which is able to encrypt your information and generate a unique code for each transaction, making your information harder to steal. Rather than swiping your card with a chip (known as an EMV card), you’ll dip it into a chip reader.
Companies are also starting to look into biometric cards, which would use both a chip as well as an identifying feature, such as a fingerprint, to offer an extra layer of security.
Credit Card Number vs Account Number
With all this talk of numbers, you may be wondering: is there a difference between a credit card number and an account number? Many people think these are one in the same, but they aren’t. Whereas your credit card number appears on your physical card, your account number is on your credit card statement.
If you need to replace your card because it is stolen or lost, you will get a new credit card number. Your account number, on the other hand, will remain the same.
Credit Card Number Tips
Although a credit card is a piece of plastic, the numbers embossed on it are sensitive financial details and should be carefully guarded. Here are some tips for keeping them secure.
Never Store Your Credit Card Number, Expiration Date, and CVV in One Place
While each of these numbers on their own contain important details, in combination they give a malicious user everything they need to successfully process a transaction. Without also being able to enter the correct expiry date and CVV, they may not be able to complete their transaction.
Keep an Eye on Expiry Dates
While banks typically send out a new card in advance of the expiry date, there may be instances where a cardholder doesn’t receive their new card in time — and that can be stressful for anyone who relies on a credit card for everyday purchases. Keeping an eye on your credit card’s expiry date is a good way to avoid being caught without a working credit card.
The Takeaway
From choosing a credit card to understanding what all the numbers on the front and back of the card mean, feeling comfortable paying with plastic can take some legwork. Depending on which credit card you get, your credit card numbers will vary.
This article originally appeared on SoFi.comand was syndicated by MediaFeed.org.
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How to protect your money after you die
Not all wills are alike; there are actually four main kinds and one of them is right for you. Sure, writing a will can be an easy task to put off until “someday.”
But what if the worst were to happen before “someday?” That could mean a complicated and emotionally draining legal process for your loved ones. Creating a will not only can provide peace of mind for your loved ones after you die, but it can also provide peace of mind for you right now.
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The simple definition of a will is a document that states your final wishes. This alone was sufficient a century ago, when many people had limited property to pass down. But in the modern era, when “property” encompasses everything from the contents of your long-forgotten storage unit to the crypto you decided to buy on a whim, a simple will may not encompass your complex life.
Not only that, but a will is a document that only takes effect after you die. But what if you were medically unable to make decisions? Modern end-of-life documents encompass your wishes if you were medically or otherwise unable to make decisions on your own. Among these documents is one that also has the world “will” in its name.
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As you begin estate planning, you’ll likely come across four common types of wills. These are:
- A simple will
- A joint will
- A testamentary trust will
- A living will
Let’s look at each type of will more closely.
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Like the name, a simple will may be the type of will that pops into your mind when you hear the word “will.” This will can:
- State how you want your property bequeathed upon death
- Provide guardianship specifications for minors
Upon death, a simple will is likely to go through a legal process known as probate to divide assets. Sometimes, in the case of high-net worth individuals, probate can be expensive. (For those with complex situations and a positive net worth, a trust can help handle those what-ifs. It can transfer assets out of your estate and into the trust, which can be advantageous in terms of taxes.)
But in many situations, a simple will can provide peace of mind for people in good health. Later, these individuals may want to take on more complex estate planning, but a will provides a good foundation when it comes to making sure guardians are named and property is divided according to your wishes.
A simple will can be created through online templates, and the cost can be zero dollars to several hundred dollars. More expensive online options may come with support from an attorney who can help answer simple questions. Once created, a will then needs to be made legal according to state laws. This may include signing the will in front of witnesses. You may also want to have it notarized. Having a hard copy of the will, as well as people who know how to access it in case of your death, can ensure the will is found in a timely manner if you were to die.
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A joint functions in much the same way as a simple will, except it is a will created by two people, usually who are married to each other. It merges their wishes into a single legal document. In many cases, this kind of will dictates that property will be left entirely to the surviving partner. Here’s the catch, though: Upon death, property will be distributed in the manner dictated by the will — the surviving person does not have the ability or authority to make changes to what the will says once the initial spouse has died.
This can sound streamlined, especially if couples were planning to leave everything to each other anyway. But this type of will can cause headaches. For example, if the surviving spouse has more children or gets remarried, it can be almost impossible to provide for additional people not named in the initial, joint will. There could be problems even if the surviving spouse does not remarry. For example, if the marital home is considered an asset to be given to the couple’s children upon the death of both of the will’s creators, it may be impossible for the surviving spouse to sell a home to downsize.
One alternative that may suit married couples is to create two individual wills. This may provide a greater degree of flexibility and better achieve the desired effect without ruling out all of life’s what-ifs.
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A testamentary trust will is usually part of big-picture estate planning. It is a document that creates a trust that goes into effect when you die. This trust can outline how certain types of property will be divided. A testamentary trust can have certain stipulations (for example, someone only inherits X piece of property when they reach Y age). This can also be used for people with minors or dependents to help ensure that wishes are followed.
What’s more, a testamentary trust can also help provide for pets. Because a pet can’t own property, naming your “fur baby” within a will can set up a legal headache. But a testamentary trust can ensure that your pet will be provided for according to your wishes.
It’s worth noting that a testamentary trust will go through the probate process, and it may not have the same tax benefits for recipients as other types of trusts. Weighing the pros and cons of different trust options can be helpful before settling on the best one for your situation.
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This is a hard topic to think about, but what if you were in an accident and were knocked unconscious? What if you were undergoing treatment for a serious medical condition and couldn’t fully grasp the options offered to you? There’s a way to put a trusted relative or friend in the decision-making role.
A living will, which is also known as an advance directive, specifies your wishes if you were medically incapacitated or unable to make or communicate decisions about your medical care. It also stipulates who your healthcare proxy, also known as a medical power of attorney, would be to make medical decisions on your behalf.
If you are creating a living, you may also want to create a power of attorney document as well. This designates a person, who may or may not be the same person as your healthcare proxy, who has the right to make financial decisions on your behalf. Having a living will can cover unexpected situations that may occur before death and can be an integral part of end-of-life planning.
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While end of life planning can be a challenging or sad endeavor, it’s an important step in making sure your assets are directed where you want them to go and that other important wishes are executed as you want. There are four main types of wills to help you legally record your plans. You’ll have options; more than one may suit your needs.
And you can decide to use online services or work in person with an attorney. In either case, having the appropriate forms completed will give you peace of mind right now — and help smooth things along for your loved ones in the future during a difficult time.
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This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
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