Credit Card Blog - February, 2007

(NOTE: For the most up-to-date listing of popular credit cards, visit the "Popular Credit Cards" section of this blog!)

Here are the most popular credit cards for the week of February 19th - February 25th:

• Low Interest
  Bank of America WorldPoints Platinum Plus MasterCard Credit Card

• Instant Approval
  Citi Bronze AA Advantage MasterCard
  

• Bad Credit
  Tribute MasterCard Credit Card
  Related: What's the Deal with the Tribute Credit Card?
  

• Rewards
  Money Return Visa Platinum Plus from Bank of America

• Cash Back
  Chase Home Improvement Rewards Credit Card

• For Students
  Discover Monogram Student Credit Card
  Related: Announcing the Discover Monogram Student Credit Card
  

• For Businesses
  Advanta Life of Balance Platinum Business Credit Card
  Related: Advanta Credit Card Update
  

• Balance Transfer
  Borders 3 2 1 Visa Credit Card from Chase

• Hotel & Airline
  Delta SkyMiles Gold Credit Card with Airline Rewards

• Prepaid
  Opt One Prepaid MasterCard
  Related: Announcing the OptOne Prepaid Credit Card
  

Good luck finding the perfect credit card - and thanks for choosing Your Credit Network!

Kimberly Carte
Team Your Credit Network

Earlier this month the Senate Banking Committee began a process that will take a long, hard look at the way American banks handle the credit card industry. Some of the items on the agenda include annual fees, credit card expiration dates, universal default pricing, double-cycle billing and late payment policies (to name a few). Each of these banking practices plays a major role in the way issuers handle your account, and the changes may very well impact your favorite credit card program. For the next few days, we’ll take a look at what each of these industry terms mean and how they affect your everyday life.

Day Two: Shorter Expiration Dates on Credit Cards

Another credit card attribute up for discussion at the aforementioned Senate hearing is the duration of expiration dates; specifically, why shorter expiration dates should become the standard as opposed to the usual three-to-four year span to which we are all accustomed. Today we talk about why credit cards usually expire 4 years after the month it was issued, and why you would benefit from a shorter expiration date.

Expiration Dates: A History

When you visualize a credit card in your head, what do you see? Embossed numbers? A Visa, MasterCard, American Express or Discover logo? The all too familiar shape and texture? Are you missing anything?

Yes – the magnetic strip! (Learn more about magnetic strips here.)

A magnetic strip what makes your credit card your credit card to the millions of machines out there that could potentially process a purchase; the trouble is, the magnetic strip has a shelf life of (you guessed it) three to four years if used gently. Keep in mind this standard was developed way back when credit cards were first introduced and it hasn’t necessarily evolved to the credit card-based economy that we know and love today, so the primary reason a credit card expires after four years is simply a means of getting you a fresh credit card strip since yours is likely to be worn out. (These days credit cards last about 18 months on average, so the old ways are already grossly out of date.)

What Does the Expiration Date Do Now?

63% of all consumers report that they order a new credit card well before the expiration date rolls around, so why have an expiration date at all? Why can’t we just let the credit card run its course and let the consumer decide when to get a new one?

The answer: cardholder verification. (Sort of.)

Credit card companies have shifted the importance of an expiration date from the simple convenience of a stress-free swipe to a means of verifying that the cardholder actually has the card in their possession. This is handier for non-electronic transactions since both the credit card number and expiration date are recorded on the magnetic strip, so once again the expiration date is becoming more obsolete as everything is processed either online or through an electronic payment processing system.

Credit Card Expiration Dates: Protecting Your Consumer Rights?

At last we arrive at the new crux of credit card controversy – expiration dates as a means of safeguarding consumers against the “predatory lending practices of credit card issuers,” as was phrased by one of the advocacy groups testifying at the Senate Banking Committee hearing.

The argument: expiration dates no longer offer convenience by anticipating the breakdown of the magnetic strip (they fall short by several years); they no longer protect against point-of-purchase credit card fraud (92% of all credit card purchases are handled electronically in the United States); why, then, could we not use the expiration date as a means to regulate the contract between the cardholder and the creditor?

Why is this important?

The financial climate has altered significantly from the inception of an “ideal relationship” between a lender and a borrower, so the credit card industry practice that exists is not only completely advantageous to the issuer, it also keeps the cardholder largely in the dark about changes to their accounts that could easily impact them in a very big way. Here are some examples:

• Most credit card contracts allow the issuer to change the terms of an agreement with just 15 day’s notice; this means promotional balance transfer APRs or other special rates could change in the middle of a billing cycle, thus costing you added interest expense without giving you adequate opportunity to move the balance elsewhere if you chose to do so.
• Credit card contracts are the only instance in the United States common law where the party with the superior position can change the contract at any time for any reason without mediation.
• Contract/rate changes are often included in very light print on the back of a credit card statement, making a seemingly normal credit card bill morph into a codified document of acceptance without the obvious indicators of a legal document.

The consumer advocacy groups argue that credit card expiration dates ought to be shortened to a year, and at that point a consumer could review the current state of the lender/borrower agreement and make sure it meets their expectations; if it didn’t, they would be given plenty of time to seek other creditors. They would also be proactively replenishing the life of their magnetic strip and protecting themselves on the rare occasion that they did need to use the expiration date for verification purposes.

Wrap Up – Aspire to Expire

This is much less controversial than the previous post about mandatory annual fees for credit cards, since it just makes sense to reduce the expiration dates to meaningful number that keep a credit consumer in the know about their account rates and status. If you are interested in having your voice heard on this particular issue, tell your senator and they will forward your opinion to the Senate Banking Committee.

Kimberly Carte
Team Your Credit Network

As a fun project, we thought it’d be interesting to look at the Fortune 100 companies as of 2006 and find out how each of them got their initial business financing. It was a much longer process than we expected it to be given the amount of research required, but it was really enlightening to see how many were founded via unconventional start-up methods (i.e. using a personal credit card, proceeds from timber, etc). Many of the corporate histories and company folklore involve spin-offs, mergers, and in some cases actual VC money (especially in this digital age), but each story is intriguing on its own. In the case of mergers, we tried to use the oldest unit for the financing used.

The piece that really stood out to us though was how absolutely dominate some industries were on this list. Oil makes up 3 of the top 10 revenue earners? Big cars that use that oil make up 2 of the other 7, so half of the top 10 revenue producers are either oil companies or companies that fuel big oil growth.

What do you think this list is going to look like 50 years from now? Will it be dominated by oil, insurance, pharmaceuticals, and telecommunications? Or, will it be biotechnology, diversified finance, Google, or heck…even Apple?

Please comment here on the industries you think will be the biggest here:

Discuss this post on Digg.

Thanks!

Carey Farnsworth
Team Yourcreditnetwork

Your Credit Network is proud to announce the addition of the Student Monogram Credit Card issued by Discover – the latest in our line of student credit cards. This blog entry will cover the basics of this credit card, as well as some comparisons to other credit cards in the student category.

Credit Card Basics

As with most credit cards issued by Discover, the fees and rates are very straightforward:

Introductory Rate: 0% APR on all purchases for six months (this does not include balance transfers)

Regular APR: 16.99%, computed on a two cycles average daily balance method

Annual Fee: This card carries no annual fee.

Additional Fees/Costs: This credit card has no additional fees or costs.

Rewards Program: This is a student credit card with cash back rewards.

Student Credit Card with Cash Back Rewards

One of the most attractive features of this credit card is its cash back rewards program, which offers a variety of tiers for students to receive cash back rewards. Unlike most student credit cards which average 2%, the maximum possible rebate that can be earned while using the Discover Student Monogram Credit Card is 5%; in order to get this rate you must make your purchase at participating vendors, but Discover makes this easy by providing you a list based off of your geographic region.

Tip: After getting your first credit card statement or welcome package, visit the website address provided and map out participating stores so you can earn back the maximum amount of cash rebates!

For all other purchases you will earn a maximum of 1% cash back regardless of where you shop, though it is important to note that you must spend at least $3,000 per year to get this rate (the average student spends about $3,800 per year according to the Senate Banking Committee’s Report on College Student Credit Card Usage); if you fall short of that rate you will still get cash rebates, but on a slightly reduced scale (see the full credit card review for more details).

The cash back bonuses are paid out via cash vouchers (or coupons) on a per-month basis, though you do have the opportunity to double your bonuses if you spend them with select retailers. This means you have the potential to get up to 10% cash back just by using the Discover Student Monogram Credit Card – an offer that is not available through other credit cards in the student credit card category. The vouchers never expire and there is no limit to how much you can earn during a 1-year period, so the sky’s the limit with the Student Monogram Credit Card’s cash back program!

Discover Student Monogram Credit Card vs. Other Student Credit Cards

The Student Monogram Credit Card’s interest rate is actually lower than the average interest rates of similar credit cards in the student credit card category. All other student credit products from Discover do offer the same interest rate and reward program, so if you’re interested in a Discover student credit card then the only real difference is how the card looks (i.e. pictures of wildlife, beaches, monogram, etc.)

The Discover Student Monogram Card is the only student credit card that allows you to customize how the card looks with your initials. When you sign up for the card you may pick from one of three designs and either a first/last initial (mine would be KC) or just a first initial (mine would be K) on the background of the credit card. This is the most distinct feature of this card and is one of the reasons it is incredibly popular!

Additional Resources:

• Credit Card Review: Discover Student Monogram Credit Card
• Credit Card Listing: Other Student Credit Cards
• Credit Card Listing: Other Discover Credit Cards
• Resources: Senate Banking Committee’s Report on Student Credit Card Usage

Kimberly Carte
Your Credit Network

(NOTE: For the most up-to-date listing of popular credit cards, visit the "Popular Credit Cards" section of this blog!)

Here are the most popular credit cards for the week of February 12th - February 18th:

• Low Interest
  Pulaski Bank Visa Credit Card

• Instant Approval
  Blue from American Express
  Related: See my analysis on Yahoo! Answers

• Bad Credit
  Tribute MasterCard Credit Card
  Related: What's the Deal with the Tribute Credit Card?
  

• Rewards
  Sony Credit Card / Sony Platinum Visa Card

• Cash Back
  AMEX One Card

• For Students
  Citi Bronze AAdvantage Card for College Students
  Related: Citibank announces Bronze Card for College Students
  

• For Businesses
  Amazon.com Business Visa Credit Card
  

• Balance Transfer
  AT&T Universal Platinum Credit Card

• Hotel & Airline
  Choice Privileges Visa Credit Card from Bank of America

• Prepaid
  Opt One Prepaid MasterCard
  Related: Announcing the OptOne Prepaid Credit Card
  

Good luck finding the perfect credit card - and thanks for choosing Your Credit Network!

Kimberly Carte
Team Your Credit Network

Earlier this month the Senate Banking Committee began a process that will take a long, hard look at the way American banks handle the credit card industry. Some of the items on the agenda include annual fees, credit card expiration dates, universal default pricing, double-cycle billing and late payment policies (to name a few). Each of these banking practices plays a major role in the way issuers handle your account, and the changes may very well impact your favorite credit card program. For the next few days, we’ll take a look at what each of these industry terms mean and how they affect your everyday life.

Day One: (Mandatory) Annual Fees For All Credit Cards

Today’s topic is the policies behind annual fees on credit card offers. At the moment, there is no regulatory law or rule in place that governs how the banking industry chooses to impose annual fees on credit products – but one of the things being discussed is the possibility of a mandatory annual fee for all credit card consumers. You read that correctly… a mandatory annual fee for all credit card holders. While this may seem to be an outrageous suggestion that benefits no one, let’s examine what an annual fee does and why the Senate is talking about making everyone pay one.

Credit Cards & Annual Fees – A Definition

Annual fees cover the average cost of a credit card holder to the issuer by guaranteeing a stream of revenue from every client at least once a year. Every time you access your bank’s website, make a phone call to a customer service representative, or mail in your payment, it costs the credit card company something to process the transaction. If you pay an annual fee for the services your credit card company provides you, then their costs for maintaining you as a client are covered; alternatively, if you do not pay an annual fee they must seek that revenue elsewhere.

The Government Accounting Office estimates that 50% of all credit card holders pay their credit card bill back in full at the end of each month. This essentially means these clients are getting an interest free loan from their credit card, which makes their value to the credit card issuer significantly less than a person who continually carries a balance and pays interest on that amount. Annual fees began to disappear from the more mainstream credit card products in the late 1980s as a means to lure consumers from competing banks; by the mid-to-late 1990s these fees were all but eliminated. In order to make up the lost money, banks began pressing the people whop are the least capable to pay them back – the clients with fair to poor credit ratings.

What Annual Fees Are Doing Today

Interest rates for people with poor credit are insanely high, but (perhaps more interesting) so are the rates of people with great credit who happen to miss a payment or two. The “no annual fee” craze brought about a wave of change that no one could have anticipated – a change in the way credit card companies do business. It makes sense if you think about it: credit card companies don’t have a guaranteed source of revenue, so they have to maximize every opportunity to make money off of every client in order to guarantee that they will serve their stakeholders and remain profitable. This gave rise to more hostile rate increase practices, steeper late fees, and less leniency when it comes to any sort of credit dispute.

Wrap Up – To Fee or Not to Fee?

Let’s examine both sides of the argument:

Mandatory Annual Fees work because they will lessen the pressure on banks to collect money at any needs necessary. This translates to less interest rate gouging toward less affluent groups (those with bad credit) and more opportunity for good credit clients to make mistakes without fear of unfathomable wrath in the form of rate increases. Another argument for this mandatory practice is the fact that all clients who use a service ought to pay for it, so while using a credit card is basically free at the end of the month if you pay it off entirely, that does not mean you shouldn’t be paying for the convenience of the service.

Imposing Mandatory Fees is a Bad Idea because it should be up to the credit consumer to decide their own financial fate. While it is true that individuals with poor credit may pay rates up to 10 times higher than that of a good credit customer, they are also not obligated or forced to take on this responsibility and therefore do not have to apply for a credit product.

Where do you stand? What do you think? Let us know!

Kimberly Carte
kimberly@youcreditnetwork.com
Team Your Credit Network

Your Credit Network is proud to announce the addition of the Citibank Bronze AAdvantage Credit Card for College Students to our ever-growing portfolio of student credit cards. This blog entry will explore the various components of this credit card as well as compare/contrast this card’s features to those of the other student cards.

Bronze AA Advantage Student Credit Card – The Basics

This credit card is intended for students with an average credit score, which explains the 18.24% APR that is standard on all purchases. While this may seem a little high, it is actually comparable to other student credit cards offered in our network; other credit cards require a co-signer (usually a parent) or a few years of excellent credit history to qualify for a reduced APR. Students who are applying for a credit card should expect to pay as much of their balance at the end of the month as is possible, which makes the annual percentage rate a moot point if the balance is paid in full every month. Students who are expecting to carry large balances at the end of their billing cycle would be well-advised to apply for a different student credit card.

This card does not have an annual fee, so if you can pay all of or most of your balance monthly then this is the perfect credit card for you.

Frequent Flyer Miles for Students

The Citi Bronze/AAdvantage Card for College Students is the only credit card to offer a comprehensive airline reward program that caters to the student lifestyle. While the miles earned are best suited for the American Airlines frequent flyer program, they can be exchanged and redeemed for other airline tickets for a marginal fee. You can earn up to 25,000 miles in a one year period, but the miles you earn will never expire provided that you use your student credit card at least once every three years. You will earn one mile for every two dollars spent, no matter where you make the charge (other credit cards require that you make the purchase with preferred vendors in order to earn points.)

Student Balance Transfer Program

One of the more unique points of this program is the 0% balance transfer option for six months. This is ideal for students who are currently carrying balances on higher APR cards and would like to consolidate these balances onto one credit card. The Citi Broze AA Advantage Student Credit Card is one of the only credit cards to offer this to college students!

Additional Resources:

• Credit Card Review: Citibank Bronze/AAdvantage Student Credit Card
• Other Student Credit Cards
• Blog Entry: Learn More about Balance Transfers

Kimberly Carte
Team Your Credit Network

(NOTE: For the most up-to-date listing of popular credit cards, visit the "Popular Credit Cards" section of this blog!)

Here are the most popular credit cards for the week of February 5th - February 11th:

• Low Interest
  Citibank Platinum Select Credit Card

• Instant Approval
  Blue from American Express

• Bad Credit
  Tribute MasterCard Credit Card
  Related: What's the Deal with the Tribute Credit Card?
  

• Rewards
  Make-A-Wish Foundation Platinum Visa Credit Card

• Cash Back
  Chase Free Cash Rewards Visa Credit Card

• For Students
  Citibank MTV U Platinum Select Visa Credit Card for Students
  

• For Businesses
  Citi Professional Card with the Thank You Network
  

• Balance Transfer
  Citi Driver's Edge Platinum Select Credit Card

• Hotel & Airline
  Miles Edge Credit Card

• Prepaid
  Opt One Prepaid MasterCard
  Related: Announcing the OptOne Prepaid Credit Card
  

Good luck finding the perfect credit card - and thanks for choosing Your Credit Network!

Kimberly Carte
Team Your Credit Network

Tribute MasterCard is a credit card many people have mixed opinions about - some like it while others don’t. Here we provide the facts to explain just what it is the Tribute MasterCard website is doing right and some of the things that you may or may not like. First we will explain what the credit card offers and then we will elaborate on some of most common complaints/issues people are having with the credit card.

The Tribute Credit Card Offers…

• Designed for Poor Credit. This credit card is designed to help build an individual’s credit score if they have bad credit and limited credit opportunities.
• Instant Approval. After an individual applies for a Tribute MasterCard they will receive an approval almost instantly. This is one of the features that makes this poor credit credit card so popular.
• Grace Period. Tribute Bank MasterCard has longer grace periods than most banks. This makes it easy and convenient to make a payment on times when compared to other credit cards that do not offer a grace period at all.
• Flexible Interest Rate. The interest rate might go back and forth from time to time, depending on the US prime rate and how dedicated you are about paying your bill. This rewards people who are serious about rebuilding credit!
• Travel Accident Insurance. When you travel with your Tribute MasterCard you will have accident insurance to cover you should the unthinkable occur.
• Acceptance & Usability. The Tribute credit card is accepted at millions of endless places around the world – any place where the MasterCard logo is displayed!

On the Flipside…

When you go online and search for credit cards, specifically the Tribute Credit card, you will find information both good and bad; however, most people look at the bad ratings and almost instantly think that this credit card is worthless and will be nothing but problems for them in the future. The number one problem that people have with this credit card is some the yearly charges that are required to join the program, but like many cards in the “bad credit” category the fees cannot be avoided due to an applicant’s poor credit profile.

Getting a credit card is not easy, and when consumers have bad credit their applications are usually turned down more often than not. This is why some bad credit credit cards have an application fee; the application fee is designed to offset the liability credit card companies incur when accepting someone with bad credit history. Bad credit history is a red flag, so by charging the fee it is eliminating people who are not serious about building their credit score and significantly reduces credit card fraud perpetrated against unsuspecting individuals.

Ready to apply for the Tribute Credit Card? Great! Click here for Tribute’s full credit card review & application.

Is the Tribute MasterCard not for you? Try some of these related credit products:

• Orchard Bank Platinum MasterCard
• Wired Plastic Prepaid Visa Card
• New Millennium Bank Platinum Visa
• Imagine Gold MasterCard
• Total Visa Card
• More Credit Cards for People with Bad Credit...

Trey Knox
Team Your Credit Network

Your Credit Network is proud to announce our second new credit product this week – the OptOne Prepaid Credit Card from Monterey Bank. This prepaid debit card is the latest card available to Your Credit Network clients, and while prepaid cards are generally the most basic cards available this one has a few key differences.

Opt One Prepaid Card – The Basics

When considering a prepaid card you ought to consider its fee structure first and foremost:

Annual Fee: $0
Application Fee: $59.95
Participation Fee: $6.95 ($83.40 annual total)

As of the date of this post, this prepaid debit card has the highest application fee out of all those offered by Your Credit Network. Additionally, the monthly participation fee of $6.95 (or 12 months x $6.95/month = $83.40 total annually) is the second-highest out of the bunch, making this a relatively expensive prepaid credit option for those interested in obtaining a prepaid credit card.

The Prepaid Credit Card Advantage

While the OptOne Prepaid Card might be a little more costly than most prepaid cards, you will still receive the benefits of the prepaid credit application process. This includes:

• No credit checks
• No rejections
• No security deposits
• No employment requirements

You need only have a verifiable address within the United States to which bills and official correspondence can be sent.

Additional Resources:

• Credit Card Review: OptOne Prepaid MasterCard Card
• Other Prepaid Credit Cards

Kimberly Carte
Team Your Credit Network

New to Your Credit Network is the New Millennium Black Diamond Visa/Mastercard issued by New Millennium Bank. In this blog entry we will cover the basics, its rewards program and how it stacks up to other cards.

New Millennium Black Diamond Basics

• Secured Credit Card
• 19.5% APR
• $59 annual fee

A Secure Choice

The Black Diamond Credit Card is designed for those who are having trouble getting approved for a credit card. It is a secure credit card that is backed by a deposit you make into an interest-earning savings account. The card does offer some great bonus features, which include:

• No credit check will be performed, so you can receive this card no matter what your credit history looks like.
• Card contains a credit limit between $300 and $5,000.
• Can open and contribute to a FDIC insured savings account
• When your card gets processed you can redeem a free companion airfare ticket to almost anywhere in the United States.
• Automatic enrollment in The Worlds Best Travel Club, which offers special discounts on airfare and hotels.

The Black Diamond Credit Card will be a good fit for you if you need to rebuild your credit history. The card has a high APR and no grace period but that is the trade off for the lack of a credit check. If you are having trouble getting approved for an unsecured credit card, this is one of the most attractive alternatives available to you. Apply for the New Millennium Black Diamond credit card and start rebuilding your credit today!

Click here to apply for the New Millennium Bank Black Diamond Visa/MasterCard

(NOTE: For the most up-to-date listing of popular credit cards, visit the "Popular Credit Cards" section of this blog!)

Here are the most popular credit cards for the week of January 29th - February 4th:

• Low Interest
  Bank of America World Points Platinum Plus MasterCard Credit Card

• Instant Approval
  Efectiva Credit Card from Bank of America

• Bad Credit
  Imagine Credit Card
  

• Rewards
  Chase Overstock.com Rewards Visa Credit Card

• Cash Back
  Financial Rewards Visa Platinum Plus Credit Card

• For Students
  Universal Entertainment Student MasterCard Credit Card
  

• For Businesses
  Citi Professional Credit Card with the Thank You Network
  

• Balance Transfer
  Chase Platinum Visa

• Hotel & Airline
  Starwood Preferred Guest American Express Credit Card

• Prepaid
  All-Access Visa Prepaid Card
  

Good luck finding the perfect credit card - and thanks for choosing Your Credit Network!

Kimberly Carte
Team Your Credit Network

Today we’re taking a break from the usual facts and figures offered up by the Your Credit Network Blog to answer some of the fun credit card trivia questions that have been rolling in. Here are the top three that we received in January:

Why Are Credit Cards All The Same Size?

Credit cards are all regulated to meet the same ISO 7810 standard, which is also the same standard used for identification cards (such as your driver’s license) around the world. ISO stands for the International Organization for Standardization – a multinational association responsible for settings standards for any number of products that you use every day. This makes sense if you think about it… how else would ATMs or merchants in Canada, the United Kingdom, or any other country be able to accept your credit card if you traveled abroad?

Credit cards are 3.375 inches wide by 2.125 inches tall, with an average width of 0.76mm (or 0.02 inches). This size was supposedly established by Bank of America in the 1950s with the introduction of the “Bank of Americard” credit card; this credit product would later evolve into the Visa network as we know it today.

What Information is Contained in the Magnetic Credit Card Strip?

The magnetic credit card strip contains three sets of data, also known as tracks, which contain information about you and your credit card.

Track one contains the most detail about you and your card because this track can hold up to 210 bits of information per inch; as such, it is also the only track that may contain letters of the alphabet. It is also the most sensitive of the three tracks, which means it can be easily damaged by magnetic fields or normal wear & tear.

Some of the fields on this track include:

• Primary account number (not to exceed 19 numbers)
• Name (not to exceed 26 characters)
• Expiry/expiration date (4 characters)
• Extra data, such as your Personal Identification Number (also known as PVV, or the Personal Verification Value)

Track two contains the most basic set of information needed to process a credit card transaction and may only hold 75 bits of information per inch. This track allows for basic processing of credit card transactions in the event that the first track is too corrupt to process.

Track three is the oldest of the tracks and is not used for the most part. Most of the major credit card issuers do not even issue credit cards with this track in order to reduce the size of the magnetic strip that is present on their credit card products.

How Do They Pick Credit Card Numbers?

Credit card numbers are determined using a sequence called the Luhn algorithm, which doubles every other number in a credit card’s sequence and then takes the sum of all numbers and divides that by ten. If the resulting product is a whole number, then the credit card number used is valid; otherwise, the credit card number is not valid. The final digit of a credit card is used as a checksum to provide additional security to the Luhn sequence – this ensures that all attempts to fabricate a credit card number have a 10% chance of working from the get-go.

The first six digits of a credit card number determine which of the major credit card networks issued the card in question.

• Visa credit cards begin with 4xxxxx.
• MasterCard credit cards begin with 51xxxx, 52xxxx, 53xxxx, 54xxxx or 55xxxx.
• American Express credit cards begin with 34xxxx or 37xxxx.
• Novus/Discover credit cards begin with 6011xx.

Additional Resources:

• International Organization for Standardization
• Luhn Algorithm @ Wikipedia.org
• Magnetic Stripe Standards @ DED Limited

Kimberly Carte
Team Your Credit Network