Credit card numbers are based on the ANSI Standard X4.13-1983 numbering system which provides a lot of information about the card. The first digit of a credit card number identifies the type of credit card. The most familiar are:
Credit cards also contain a card security code or card validation code. Visa, MasterCard and Discover have a 3-digit code on the back of the card. American Express has a four-digit code on the front of the card. These codes verify that you actually have the card in your possession when making a purchase online, by mail or over the phone.
The back of the credit card contains electronically encoded security information in the form of a magnetic. The magnetic strip actually contains three lines of information and is used for authorizing payments whenever the credit card is used.
Newer credit cards, called Smart Cards, contain an electronic chip with even more security information. The newest Smart Cards are called contactless because you can simply wave them near the reader and bypass sliding the card in a card reader.
Getting a credit card requires that an application be completed. This is actually a contract between the applicant and the credit card issuer and is very similar to a credit application used when purchasing a car. Each party agrees to perform some function. One party agrees to extend credit; the other agrees to pay bills on time. Of course there are many other parts to the agreement, but those two are the basics. The credit card issuer approves the application and provides the consumer with the credit card.
The consumer can use the credit card for shopping at stores or on the internet, etc. You can also use credit cards to withdraw cash from ATMs (automatic teller machines).
Most credit cards are issued with a credit limit like $3000.00. The credit card issuer is providing a $3000.00 revolving line of credit. Since it is a line of credit, it can be used at any time there is a sufficient amount of credit available.
A visa credit card is the most popular but that does not mean others are not just as good. People in the United States are finding Discover Cards that offer very good credit card rebates.
Consumers classify credit cards differently than the ANSI Standard mentioned above. Many consumers are looking for:
We’re glad to feature each of these classifications at Credit Cards for America.
