2.8 Information on credit cards

Each feature found on a credit card has a very important function. Some features are for security and some are to enable the cash machine (ATM) or the merchant’s Point of Sale (POS) machine to read your card and authorise the transactions that you wish to make.                                                                        

             Information on the front of a credit card

1. Issuing bank logo – This will show which bank issued the credit card and will help you identify which credit card account you are charging the transaction to.
    
2. ‘Smart’ Chip – These are a relatively new addition to credit and debit cards. The addition of the chip makes paying by card more secure because instead of signing to make a purchase the cardholder has to enter in their PIN number which only they know. Signatures can be forged by fraudsters but PIN numbers cannot. The chip is embedded in the card but you will only be able to see the silver or gold coloured square on the front left-hand side of the card.
   
   The PIN number you will need to use for Chip and PIN purchases is the same one you would use if you put your card into a cash machine/ATM.
   
   If you don’t know your PIN number you can ask your bank to send you one in the post. The number they send you will be randomly generated. You can change this random PIN to a number you will remember by inserting your card into a cash machine, entering the PIN the bank sent you and choosing the ‘Change PIN’ option on the machine. DON’T TELL ANYONE YOUR PIN OR WRITE IT DOWN ANYWHERE.
    
3. Hologram – This is a security measure which proves that the card is genuine. Security holograms are very hard to forge because they are replicas of master holograms made using expensive, specialized, technologically advanced equipment.
    
4. Credit card number – All credit card numbers share a common numbering scheme. Your card number will contain a single-digit major industry identifier (MII), a six digit issuer identifier number (IIN), your account number and a single digit used to check if the card number is valid based on the Luhn algorithm.
   
   Each credit card issuer will have an IIN code. This will make up the first six digits of your credit card number. The last digit is the check digit for the Luhn algorithm. The remaining numbers make up your account number.
    
5. Card brand logo – The cards are made and run by payment processors, such as MasterCard and Visa, who are responsible for processing payments between the banks of merchants and the banks of the purchaser that use MasterCard or Visa branded debit and credit cards. This logo will indicate who the payment processor is for the credit card.
    
6. Valid From Date and Expiry Date – Your credit card will be valid between two dates. If you try to use a credit card outside of these dates it will not be accepted as a valid form of payment. Both dates will be in the format MM/YY, or month and year. Some cards will describe both dates together as ‘Valid dates’ and some will call them ‘Valid From’ and ‘Expires End’ dates. The card will be valid from the 1st of the valid from month and expire at the end of the last day of the expiry month.
   
   If a card has a ‘Valid From’ date of 03/07 and an ‘Expires End’ date of 03/10 your card will be valid from 1st March 2007 until 31st March 2010.
    
7. Cardholder name – This will be the name you gave on your application for credit. When you make purchases with your credit card online, you will need to enter the name on the card exactly as it is written because this is the name that will be linked to the other details displayed on the card. If all the information you enter during an online transaction doesn’t match up to the information actually displayed on the card then your payment will be rejected.
   
   

   Information on the back of a credit card

1. Magnetic stripe – This stores data relating to the card. When the magnetic stripe card was invented, the main storage medium at the time was magnetic tape (also used in cassette tapes and VHS tapes) so this was the logical choice for the credit card at the time. Magnetic stripes are readable by most point-of-sale (POS) hardware.
    
2. Signature strip – The signature strip is a zone on the card that can be written on in ball point pen (normally needs to be in black pen). The card needs to be signed by the cardholder in order to be valid. The signature is a way of proving the identity of the cardholder. If the cardholder can reproduce the signature on paper, it helps to verify that they are the true owner of the card.
   
   This is why it is important to always sign a credit or debit card when you receive it. If a fraudster finds an unsigned card, they can sign it in a manner that they will be able to reproduce and could therefore pass themselves off as the authorised cardholder.
   
   It is also important that your signature isn’t too easy to replicate by someone else but, at the same time, easy enough for you to replicate.
    
3. Card Verification Value (CVV) – There are two sets of digits to be found on the signature strip of your credit card. The four digits make up the CVV 1 code and the last three digits make up the CVV2 code.
   
   Each payment processor has their own name for the CVV code, but it works the same for all major card types (Visa calls the code the CVV2, MasterCard calls it CVC2, and American Express refers it to the CID).
   
   The CVV1 code is also encoded on the magnetic stripe and is used for transactions in person. Normally this four digit code is made up of the last four digits of your credit card number.
   
   The CVV2 code is used for Card Not Present (CNP) transactions and is asked for by merchants to prove that the person involved in the transaction actually has the card physically in their possession. Merchants will ask for this number when you make a purchase over the internet, on the phone or by mail or fax.
   
   The above is true for MasterCard and Visa credit cards. On American Express cards, there will be a four digit CID code printed on the front side of the card above the credit card number. It will be printed flat, not raised like the credit card number.
   
   Other information on the back of a credit card
   
   The backs of credit cards usually contain other information however, this is not used directly when you make purchases and carry out other transactions with the credit card - it is there to help or inform the cardholder.
   
   Normally there will be several telephone numbers on the back of a credit card. Most providers will include their card enquiries or customer service numbers. Some display the 24 hr helpline that you need to ring to report your card lost or stolen.
   
   Additionally, most providers will state that the card can only be used by the authorised signatory in accordance with the conditions of use. The card will also state that it is the property of the issuing bank and if it is found it should be handed in to the place stated on the credit card.
    

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