Payment entities have been faced with more diligent and determined scrutiny from the credit bureaus. As a payment processing guide, credit card number verification is imperative. Card number verification is used by financial institutions to determine if the credit card numbers floating around are actually operational. If they show not to be valid, the card is less likely to be accepted.
The inherent danger with this process is if they are deemed to be wrong or bogus, the card could be deactivated, canceled, or sometimes worse, stolen.
Probably the easiest and most core concept to comprehend is that security above all else should be the first concern. That is why modifying programs are formulated to utilize regular business credit card processing to prevent fraudulent transactions. Although this widespread concept may seem complicated and decipherable, it is best that only the most advanced of this initiative is used.
This is not the core of the problem, however. The system being used must be structured in such a manner to be adaptable to these parameters. In doing so, modern regulations around the credit card number verification function likewise pose a major challenge. Specifically for these regulations, the card is checked for the issuing bank’s issued non-designated business credit cards with their magnetic stripe information documented thereon. This system verifies the validity of the account through the accounting institution downstream above. As of October 1, 2003, Visa, MasterCard, and Diner’s Club were no longer permitted to process cards with debit information on them.
To solve this dilemma, the regulatory body referred to as PCI comes into play. However, the concept is more than just cracking a piece of information. By incorporating the Visa/MasterCard information into the customer’s personal account, the bank is able to tie up more data that is not actually a factor in credit card number verification.
For example, this data would include banking information, billing information, email addresses, birthday, and social security numbers. The consistency of the card’s information stored in these different accounts is one of the two ways it could be verified. It may also include the expiration date, change dates, and/or state, county, and zip code on the account.
This comprehensive method of credit card number verification enables financial institutions to view the card holders’ credit histories and establish a catch-all list of normal issues to approach businesses. Businesses know this is implemented immediately.
The third core element seen above is Managing an Integrated Identity Program. Once the fraud, Prevention elements are implemented the company can begin to take advantage of the third way of credit card number verification. By its nature, your company will only have access to a data bank siphoning data provided by the credit reporting agency.
The beauty of this method of credit card number verification is monetary savings enable companies to attain the merchants’ payments on a global scale. The method of authentication is somewhat more complex with it entails the approval and monitoring of the more powerful signs that identify the cardholder which is specific to the card type as well as state and city in which the card is physically held.
Although this method is not likely to be as easy to administer and operate as a full PCI compliant program, it is almost often required compared to the rigorous standard of a complete, but compliant program. Because the State Farm Credit Card Number Verification Services (SFVN), suggests a number of modifications in billing processes, it should be noted that the system can be several years or as little as nine months to adapt to these modifications. Moreover, the service helps itself in due diligence to look at the history of information; that is, can confirm the validity of billing and monthly account statements. So, many of the basic functions can be easily dealt with by a credit reporting agency.