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How to Validate Credit Card
With payment flexibility and other added benefits, the use of credit cards to make online and offline transactions is increasing every day. However, the risk of fraud associated with this mode of payment cannot be denied. Businesses can face significant challenges and some serious financial consequences when accepting payments and allowing unauthorized purchases. However, with a credit card validator, the authenticity of credit card information can be verified, enabling fraud prevention.
How can a credit card validator help avoid the risk of misuse and fraud related to card usage? How to validate credit card without manually verifying each detail? We have answered these and other related questions in detail in this guide. Let’s read.
What is a Credit Card Validator?
A credit card validator, also called a credit card checker, tests the authenticity of a credit card before a transaction. It is essential for businesses that are looking to avoid fraud and chargebacks in order to minimize financial risk. Credit card validation can be complicated with different processes and checks in place. But the goal is to ensure that the card is valid and the customer is a legitimate cardholder. This can be crucial in case of a purchase being made from a stolen card as businesses can prevent financial consequences before the transaction takes place.
A credit card verifier checks the card’s structural validity, which is why many eCommerce platforms have also started using them to reduce payment errors.
Why Use a Credit Card Validator?
A credit card verifier is a tool specifically designed to verify credit card information and minimize revenue lost to fraud. This helps create a stable financial environment and elevates customer experiences from a security standpoint. Additionally, with a lower fraud rate, the support teams can better manage other CX-related issues and improve the overall customer service quality.
A card validator also reduces potential damage to the cardholder as it flags the use of stolen or lost credit cards early in the transaction process.
How Does a Credit Card Validator Work?
Before investing in a card validator, you should know how to validate credit card. There are multiple layers of security when a transaction is made, and a validator verifies information using multiple components and algorithms.
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Personal Account Number (PAN)
It is a 12-digit number unique to every cardholder. The software confirms that the PAN has a valid range and follows the expected structure.
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Major Industry Identifier (MII)
MII is the first digit of the credit card number and indicates the card issuer’s industry. A credit card validator checks if this digit matches the issuing industry.
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Luhn Algorithm
Also known as the ‘modulus 10’ or ‘mod 10’ algorithm, this mathematical formula performs a series of calculations to check the compliance of the card number with the expected checksum.
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Checksum Authentication
The checksum validation takes into account the last digit of the card number. The integrity of the entire card number is validated by the preceding digits. The validator then recalculates and checks if the checksum matches the provided digits to confirm whether or not the card number is valid.
Types of Credit Card Validators
Now that you know how to validate credit card, here are the types of validators you must check out:
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Luhn Algorithm Validator
This type of credit card validator runs the credit card number through the Luhn algorithm to check its mathematical validity. If the number matches the expected structure and digits, the card is verified.
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Issuer Identification Number (IIN) Validators
IIN validation includes verification of the first six digits of the credit card number by comparing them to a valid IIN database. This validator confirms the card’s issuer. IIN validators are also known as BIN (Bank Identification Number) validators.
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Card Verification Value (CVV) Validators
CVV validators verify credit card CVV and facilitate the processing of transactions. This validator, however, does not determine if the card is currently active.
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Address Verification Service (AVS) Validators
These tools check the address details during the transaction. The billing address should match the data recorded by the issuing bank.
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Expiration Date Validators
This validator checks the card’s expiration date to prevent the use of expired cards that lead to declined transactions and chargebacks.
How to Validate Credit Cards?
Here’s what the credit card validation process looks like:
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Choose a Trusted Credit Card Validator
Your first step is to find a card validator that you trust for credit card verification. Select the one that is fitting for the Indian market and is capable of recognizing the unique attributes of card numbers provided by Indian banks and issuers.
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Enter the Accurate Card Number
The validation software consists of fields for information like card number, CVV, and expiry date. Ensure that you input accurate information.
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Card Verification Value (CVV) Validators
CVV validators verify credit card CVV and facilitate the processing of transactions. This validator, however, does not determine if the card is currently active.
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Initiate Validation
The software’s algorithm will start validating once you enter all required details and click on the ‘Validate’ button.
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Understand/Interpret the Validation Results
The tool will highlight the invalid details and share whether or not the card is valid. Make sure to pay close attention so as not to use fraudulent cards in the future.
Benefits of Using Credit Card Validators
If your business accepts payments via credit cards, you most certainly need to start using card validators. Here are the top reasons why:
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Avoid Scams
Credit card validators allow you to avoid fraudulent and unsafe transactions. They verify the validity of the number on your card and ensure that the account holder’s details align with the issuer.
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Minimize Loss
A credit card validator helps avoid chargebacks. Fraudulent activities often lead to transaction errors, where the bank fails to reimburse the vendor that allowed the payment. This can mean significant losses in your business, which can be avoided with credit card verification.
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Ensure Compliance
Complying with industry standards is critical. Card validators ensure that all compliance requirements are met.
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Secure Financial Data
Card number validation lets you secure sensitive data during online transactions. When the card is identified as valid, the merchant can ensure that the customer’s information is protected and that the transaction is secure.
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Higher Accuracy
While using the credit card online, the validators authenticate number formats in the input fields. Hence, it becomes easy to detect potential errors before the transaction starts. This enables seamless transactions and improved customer experiences.
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Frequently Asked Questions (FAQs)
Is it legal to use credit card validators? Are there special guidelines for using the validation service providers?
You will face no legal issues when using a credit card validator. However, some guidelines must be followed. The application must not store sensitive customer data. Moreover, it must comply with the PCI DSS standards for data protection. You should also learn about the validation method before choosing the validator.
Are there ways to check the credit card number’s validity manually?
For manual validation, you need to double every second digit in the right-to-left order. Now, add the remaining digits together. Also, add the digits in odd places in the right-to-left order. Then, add the sum of digits at even and odd places and check if the result is divisible by 10. If yes, the card number is valid.
Does the credit card validator validate the CVV number on my card?
Credit card validators do not usually authenticate CVV numbers. However, CVV validation is essential during an online transaction. It ensures that the customer providing the details has access to the credit card.
Which data is authenticated by the credit card validator?
The card validation software checks the format, length, and prefix. The expiration date is also verified to ensure the card's validity.
Does a credit card validator have the potential to detect invalid credit cards?
Yes. Your credit card number checker is designed to identify invalid cards. However, it cannot check if the card is currently active.
Written and Reviewed by:
Priyanka Rao is a content strategist for Jupiter.Money, and specializes in writing on topics related to finance, banking, budgeting, salary & wages, and other financial matters. She has a passion for creating engaging content that resonates with audiences across various digital platforms. In her free time, Priyanka enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. With a keen eye for detail and a creative mindset, Priyanka is committed to creating content that connects well with her readers, enhancing their digital experiences.
Priyanka Sharma is the Head of Credit Cards (Sr. Director Business & Product - Credit Cards) at Jupiter Money, where she leads the growth and development of the company’s credit card portfolio. She is responsible for driving strategic initiatives and enhancing customer experiences through innovative credit products. Priyanka’s leadership is shaping Jupiter’s approach to simplifying personal finance for its customers.
Prior to her role at Jupiter Money, Priyanka was an Engagement Manager at McKinsey & Company, where she provided strategic advice to clients across various sectors. Her expertise in business strategy, growth, and operations was built on her strong analytical skills and client-focused problem-solving abilities. Earlier in her career, she worked at ZS, a global business consulting firm, where she contributed to various projects, gaining significant experience in data-driven business decisions.
Priyanka holds a Post Graduate Programme in Management with a focus on Finance, Strategy, and Leadership from the Indian School of Business (ISB), where she graduated with distinction, earning a place on the ISB Dean’s List. This prestigious academic achievement underscores her deep understanding of financial strategy and leadership, which she continues to leverage in her fintech leadership role.
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