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.

1. 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.

2. 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.

3. 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.

4. 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:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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:

1. 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.

2. 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.

3. 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.

4. Initiate Validation

   The software’s algorithm will start validating once you enter all required details and click on the ‘Validate’ button.

5. 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:

1. 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.

2. 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.

3. Ensure Compliance

   Complying with industry standards is critical. Card validators ensure that all compliance requirements are met.

4. 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.

5. 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)