The field of e-commerce is booming. This is due to the status of the internet changing from luxury to necessity. Everyone is connected to the internet in some way whether that be fiber, wireless, or even mobile data.
Naturally this has resulted in many business avenues moving online. You can buy stuff from online stores and have it delivered to your house/work place in a few hours/days.
This buying and selling of goods and services online is known as e-commerce. The proliferation of e-commerce comes with its own set of challenges and problems.
One of the most important issues is related to credit cards. Online payments are done via credit cards. Unfortunately, this opens a whole new can of worms. Credit card fraud, stolen cards, and other scams can scare away customers.
This is why credit card validation is required. Today, we are going to look at how this can be done via tools known as credit card validators and what other uses they have in e-commerce.
How Does a Credit Card Checker Work?
Before we can understand the uses of a credit card validator, we first need to understand how it works. Basically, a Credit Card Checker uses the following things that enable it to check a card.
- The format of the credit card number.
- The Luhn Algorithm
- The IIN or BIN
Let’s explain each in detail. A valid credit card number has 13 to 19 digits. If the number of digits is lower or higher than this range, then the card number is automatically invalid.
The other thing it checks is whether the starting number fits those of known issuers. For example, Visa cards start a 4, while Master cards start with 5, and AMEX cards start with 3.
Once this basic check is complete, the Luhn algorithm comes into play. This is a simple checksum algorithm that can validate credit card numbers. Here’s how it works.
- The algorithm starts by reversing the digits of the credit card number.
- Beginning with the first digit in the reversed sequence (which corresponds to the second-to-last digit of the original number), double every second digit. If doubling results in a number greater than 9, subtract 9 from the result.
- Add together all the digits from the modified sequence, including those that weren’t doubled.
- The final step is to check whether the total sum is divisible by 10. If it is, the credit card number is considered valid according to the Luhn algorithm.
An example of this algorithm in action is given below.
We take a fictional number 4539 1488 0343 6467 and validate it using the Luhn algorithm:
- First we reverse the number like this: 7646 3430 8841 9354
- Then we multiply every 2nd digit with 2 like so:
7 12 4 12 3 8 3 0 8 16 4 2 9 6 5 8 - Then, we subtract 9 from every doubled digit that is greater than 9. The result is as follows:
7 3 4 3 8 3 0 8 7 4 2 9 6 5 8 - Sum All Digits: 7 + 3 + 4 +3 +8 + 3 + 0 + 8 +7 + 4 + 2 + 9 + 6 + 5 + 8
= 77 - Check Divisibility by 10: 77 is not divisible by 10, so the credit card number is invalid according to the Luhn algorithm.
However, passing the Luhn algorithm check alone is not enough to make sure that a credit card is valid. The BIN (Bank Identification Number) also needs to be checked to make sure that the card is issued from a real bank.
If all these checks are passed, then the credit card is considered valid.
What are the Uses of Credit Card Checkers in E-Commerce
So, now that we understand what a credit card checker is, it is time to learn how they are used in the e-commerce space.
1. Detecting Fraud
Of course, the most obvious use of credit card checkers in e-commerce is to detect fraud.
There are many tools online that can generate fake credit card numbers that look valid. Of course, such cards don’t usually work because they are not connected to a real bank. However, they put strain on a system’s resources when they try and make unsuccessful attempts at withdrawing money.
With credit card checkers, an e-commerce payment system can quickly check whether the card is valid or not before proceeding to payment. This is possible because the various checks used by a CC checker are computationally simple and require very little resources. As a result, the cheek takes less than a second and the whole fraud attempt falls through.
2. Data Entry Validation
E-commerce systems have to save customer information in secure databases. This means there is a data entry procedure somewhere in the pipeline.
Most of the time, a customer has to add their information themselves. While inputting credit card information, it is possible they misinput something by accident or mix up the numbers.
A CC validator baked into the data entry system can catch such errors and inform the customer that their credit card information is not correct. This way, you can prevent incorrect CC information from being entered and stored and avoid problems later on.
3. Testing Payment Gateways
E-commerce payment systems need to be highly secure. When developing such a system, it is important to test it for data leaks and vulnerabilities. After all, if something as sensitive as credit card info ever got leaked and subsequently stolen, then it would result in a massive legal affair.
Credit card checkers can help with the testing. Testers can use the results from a CC validator to cross-check the results of their payment system in detecting fraudulent cards.
This can help developers find and address any weaknesses their payment gateway might have with respect to CC validation. Or they could simply use an API of the CC checker and integrate it into their payment gateway.
Payment systems also face challenges when it comes to processing outside regular hours. For example, one might wonder if credit card payments are processed on weekends. Understanding this can be vital for e-commerce businesses keen on efficient transactional flows and customer satisfaction.
Conclusion
So, there you have it, the importance of credit card checkers, how they work, and most importantly, their uses in e-commerce. Utilize this tool yourself to make your online store better.
