Online business is a scam hub without a trusted credit card validator

Close up of a happy woman hand buying online with a laptop and paying with a credit card

Online Business is a very troubling task due to scams and frauds and the best way to ensure safety is by using a trusted credit card validator like Prepostseo which is used to validate the credit card number and company. It does so by comparing the credit card number against Luhn Algorithm as legitimate credit card numbers are designed to pass the Luhn Algorithm.

The advent of the internet has seen the development of online market where products are listed on the internet for the customers to be viewed, selected and bought all over the internet.

This comes with benefits and problems of its own. While E-commerce definitely has made shopping and subsequently consumption and retail easier. It’s not without its own problems. The biggest one being the online credit card scams to which both customers and retailers can fall prey.

The focus of this article will be on the losses that the online merchants face in E-commerce with the online payment systems and credit card scams.


Validation process

The validator checks the credit card number that you input and gives back a result which will be prudently and carefully analysed and reviewed for a precise Major Industry Identifier that is MII code, this is the code that identifies what company the card belongs to.

Then further, you know how it can be recognized by matching them in the credit card number, the IIN code and PAN number as well as with the checksum. The validator analyses different cards for different companies MasterCard, Discover, American Express card and JCB cards also.

Most of the credit card generators have predefined and set rules to validate and/or verify the credit card numbers and they go through those rules and check for the following:

  • Issuer Identification Number: – It consists of the next six digits.
  • Personal Account Number & Checksum: – Last seven digits include 6 digit personal account number and a 1 digit checksum.
  • Major Industry Identifier: – It is the first digit of the credit card number.
  • Luhn Algorithm: – The validator is programmed in such a way to that it ensures that the credit card number that is entered passes the Luhn algorithm to get validated.


Steps for credit card validation

  • Load the validator page and when it is loaded, input the credit card number that you want to validate.
  • Write the full credit card number in the given space and then click on the button saying ‘validate’ or ‘verify’.
  • As soon as you click it you will see that the logo of the company to which the credit card belongs it would get highlighted while the rest will be hidden. How it happens depends on what credit card validator you are using.
  • Further information would most probably be given as follows in most of the credit card validators:
    1. Luhn Algorithm: – This will tell you that the card number has passed the validation test of the Luhn algorithm therefore it is absolutely valid.
    2. IIN Number: – This will tell the IIN code in the credit card number.
    3. PAN & Checksum: – This will differentiate the 6 digits personal account number and a single digit checksum.
    4. MII Number: – This is the first number of the credit card number and will tell you which company the credit card belongs to.

This is the entire process and it helps prove whether that the credit card number in question belongs to a valid credit card of a legitimate company or not.


Why is it important to use credit card validator?

Online Commerce is somewhat of a more dangerous kind of commerce than physical commerce due to increased potential for scams that are made possible due to the method of online transactions and fake credit card numbers. If a customer with a fake credit card number buys something online.

More than 7.5% revenue of merchants from online business is eaten up by the cost of actual fraud and costs for fraud-prevention tools, according to a survey released Tuesday by Javelin Strategy & Research, a consulting firm that specializes in the payments industry.

“As the volume of e-commerce transactions increases, it becomes harder for merchants to discern between legitimate and fraudulent activity,” according to the study by Javelin, a unit of Greenwich Associates LLC.

The increasing problem of online card scams comes at a time when criminals are growingly being stymied at the checkout line. Computer chips that are inherent in credit cards make it far tougher for thieves to use stolen data to create fake cards.

Fraud is specifically difficult for online merchants who face a dilemma because they are the ones stuck to pay the cost of bogus transactions yet they also are under the hook pressure to deliver products to customers swiftly. That is especially the case for merchants that sell digital goods such as music or videogame downloads.

The Javelin study found that digital-only merchants are spending more than other online merchants to combat fraud, with 8.6% of their revenue being used to cover fraud losses and fraud management.

Scammers are also targeting online travel agencies using stolen cards to book hotels and flights and then moving up the reservation date by calling the hotels and airline companies directly, says James Houlihan, co-founder of Paladin Group, a fraud-prevention consulting firm. “Frauders want to look like normal customers so when they’re hiding between good customers, it is hard for a company to pick them off,” he says.

Credit card scams are not possible with fake credit card numbers only for online shopping but they do become possible when along with a fake credit card number, a scammer also has information of an actual account of a real person, it is for this reason that the credit card validators are extremely necessary to protect from online fraud.

The merchants could follow a simple Standard Operating Procedure (SOP) and check for the validity of the credit card, its company and the verification of the credit card number by including credit card validator in their list of precautions in online trade.


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