What Is a PAN (Primary Account Number) on a Credit Card?

A Primary Account Number (PAN) is a numerical identifier found on credit and debit cards. It plays a central role in payment card transactions, linking a card to its issuing financial institution and the cardholder’s specific account.

Defining the PAN

The Primary Account Number (PAN) is a unique string of digits, typically ranging from 14 to 19 numbers, that serves as the main identifier for a credit, debit, or other payment card. This number is usually embossed or laser-printed on the front of a physical card. In some cases, it may also be encoded on the magnetic stripe on the card’s rear side.

The PAN functions as the core identification for a cardholder’s account, uniquely linking the physical card to the financial institution that issued it. It is distinct from a bank account number, which is used for direct bank transfers and found on statements rather than the card itself. The PAN is designed to identify the card and its issuing bank, facilitating communication among the various entities involved in a payment transaction.

Decoding the PAN Digits

A PAN’s structure is composed of distinct parts, each conveying specific information. The first digit of the PAN is known as the Major Industry Identifier (MII), indicating the industry associated with the card. For example, financial institutions typically have MIIs ranging from 3 to 6. Visa cards often begin with a ‘4’, Mastercard with a ‘5’ (or ‘2’), American Express with a ‘3’, and Discover with a ‘6’.

Following the MII, the next five to seven digits form the Issuer Identification Number (IIN), also commonly referred to as the Bank Identification Number (BIN). For instance, a Visa card issued by one bank will have a different IIN than a Visa card issued by another, even though both start with ‘4’.

The digits after the IIN/BIN, excluding the very last one, represent the individual account number portion. The final digit of the PAN is a “check digit” or “checksum number.” This digit is calculated using the Luhn algorithm and serves as a validation mechanism to help detect accidental errors, such as mistyping, during data entry.

The PAN’s Role in Transactions

When a cardholder initiates a payment, whether in person or online, the PAN is read from the card via its EMV chip, magnetic stripe, or near-field communication (NFC) technology. This number is then transmitted, often in an encrypted form, to the acquiring bank, which is the financial institution handling the transaction for the merchant.

Upon receiving the transaction information, the acquiring bank forwards it through a card network to the cardholder’s issuing bank. The issuing bank uses the PAN to locate the cardholder’s account, verify the card’s validity, check for sufficient funds, and scan for potential fraud before authorizing or declining the transaction.

The PAN is sensitive information due to its direct link to financial accounts and its role in authorizing charges. Unauthorized access or misuse of a PAN can lead to fraudulent transactions or identity theft. Businesses and payment processors employ measures such as encryption and tokenization to protect PAN data during transmission and storage.