Pan (Primary Account Number), What It Is and What the Numbers Mean

Every day, over 1 billion credit card transactions are made in the world, all made possible by a fundamental element: the PAN code.

The credit card PAN is much more than a simple sequence of numbers printed on our card. This unique code, also known as card pan number, plays a crucial role in the security and authentication of financial transactions. Its complex structure, composed of specific digits that follow international standards, hides a sophisticated verification and protection system.

Let’s analyze in detail the meaning of the PAN code, its composition, the security mechanisms that protect it and its role in the evolution of digital payments.

What is the PAN code of credit cards and what is it for

The PAN code (acronym for Primary Account Number) represents the digital identity of our credit card in the vast world of electronic payments.

Over the years, the banking system has developed the credit card PAN as a universal standard to uniquely identify each payment instrument. This code, typically composed of 16 digits (in some cases 13), is assigned directly by the issuing institution according to a rigorous and structured process.

The PAN number plays a crucial role in transactions, acting as a link between:

• the identification of the cardholder;
• the verification of the availability of funds;
• the authorization of transactions;
• protection against fraud.

This unique identifier is particularly important for online purchases, where, along with the expiration date and security code, it is the main tool for verifying the authenticity of the transaction.

International standardization of the PAN number

The structure of the PAN follows the international standard ISO/IEC 7812, which defines precise guidelines for the composition of the digits. The credit card PAN code is divided into three main sections.

• Issuer identification: the first digits identify the payment circuit (such as Visa or Mastercard).
• Institution code: a series of numbers that identify the issuing bank.
• Individual number: the sequence that identifies the specific account of the holder.

This standardization ensures that each card is recognized and processed correctly anywhere in the world, facilitating international transactions and maintaining high standards of security.

PAN Number: How it is composed and explanation of the digits

Let’s analyze together the structure of the credit card PAN, a code that follows precise rules and is composed of distinct segments, each with a specific meaning.

1. The first six digits constitute the IIN (Issuer Identifier Number) or BIN (Bank Identification Number)
2. The digits from the seventh to the penultimate uniquely identify the holder
3. The last digit is a control code calculated with the Luhn Formula

The length of the card PAN can vary depending on the issuer. While the most common standard provides for 16 digits, there are significant variations, such as, for example, American Express, which uses 15 digits, and some ATMs that even reach 19 digits. On the other hand, the ISO/IEC 7812 standard allows up to 19 digits.

Comparison of Major Issuers

Each payment network uses specific initial digits that immediately identify it:

Interestingly, this system is evolving: due to the growing number of issuers, the standardization body recently extended the issuer identification digits from six to eight, thus preparing for the future challenges of the digital payments industry.

Will the PAN number be useful in the future, with the advent of digital cards?

As just mentioned, we are witnessing a radical transformation that leads us to ask what the future of the PAN number will be. Mastercard has announced that by 2030 all cards issued on its network in Europe will use tokenization, replacing the classic 16-digit number with randomly generated tokens. This change represents a significant evolutionary leap in the way we conceive the PAN of the card.

Among the main changes already underway (or announced), we find:

• replacement of the physical PAN with digital tokens;
• integration with biometric authentication systems;
• implementation of advanced encryption systems;
• development of embedded payment solutions.

The digitalization of the credit card PAN is leading to the emergence of new security standards. Particularly significant is the evolution towards mobile wallet, where the number is replaced by more secure digital tokens.

Original article published on Money.it Italy. Original title: Codice PAN della carta di credito, cos’è e significato delle cifre