Information about credit card| what is CVV number | What does that 16 digit CreditCard Number signify| Mechanism of credit card

In today's world every citizen may have one or more credit cards. But do you know whats the meaning of your 16 digit credit card number? Or what is CVV stands for?

I have some information related to above queries, i hope it will helpful for you.

In credit card you have to know two most important thing that is

(1) Credit card number (generally located at front side of your card)
(2) CVV (generally located at back side of your card)

First we talk about CVV or Creditcard Varification value.The CVV is not contained on the magnetic stripe of the card, it is not typically included in the transaction when the card is used face to face at a merchant, but forms an important part of Online Transactions. its a 3 digit number. You should remember and scratch the CVV from your card for security purpose. Their exist higher probability of credit card frauds in online transactions as per credit card companies.



Next is your 16 digit Credit Card number, You are surprised to know that every single digit in your Credit card have its own significant meaning.

Theese numbers stand for:

• The first digit in your credit-card number signifies the Network or the type of card you have

3 - travel / entertainment cards
4 - Visa
5 - MasterCard
6 - Discover Card

• The structure of the card number varies by Network:

American Express - Digits three and four are type and currency, digits five through 11 are the account number, digits 12 through 14 are the card number within the account and digit 15 is a check digit.

Visa- Digits two through six are the bank number, digits seven through 12 or seven through 15 are the account number and digit 13 or 16 is a check digit.

MasterCard- Digits two and three, two through four, two through five or two through six are the bank number (depending on whether digit two is a 1, 2, 3 or other). The digits after the bank number up through digit 15 are the account number, and digit 16 is a check digit.



Another important thing that you should know about Credit card is the magnetic stripe on your card located at back side.

If the ATM isn't accepting your card, your problem is probably either:
• a dirty or scratched magnetic stripe
• an erased magnetic stripe

Information on the stripe
Strip of magnetic tape, affixed to bank credit and debit cards, encoded with cardholder identifying information, such as the Primary Account Number and card expiration date, permitting automated handling of transactions.


Last and the perhaps most important thing about credit card is :

Authentication
There are three basic methods for determining whether your credit card will pay for what you're charging:

• Merchants do voice authentication using a touch-tone phone.
• Electronic data capture (EDC) magstripe-card swipe terminals are becoming more
• Virtual terminals on the Internet.

You may be think about it that how credit card work for you? What issuer bank get and how marchant got profit ?

Mechanism of credit card
There are three parties to a card. They are:

• Credit Card Holder
• Merchant
• Bank (credit Card Company)

On the credit card, cardholder gets the interest free credit period and the discount offers, cash back schemes, reward points etc. The merchants get a secured payment for the sales he has made throughout the month within 6 to 8 days after the discount fee that is charged by the bank. Banks make money through fees from merchant establishments and the higher than normal interest rate paid by cardholders for the balance in their card.

Did you know what is CIBIL and why it is important? read here