Everything you need to know about the PAN Number

Security in electronic transactions is essential in today’s financial landscape. A key element in this security is the PAN Number (Primary Account Number), which uniquely identifies bank accounts and credit and debit cards. Knowing what the PAN Number is, how it is generated and what it is used for is essential for anyone who uses online banking and payment services.

At seQura, we understand the importance of security in electronic transactions. That’s why we offer flexible and secure payment solutions, designed to provide a reliable and worry-free online shopping experience. Our commitment is to ensure that each transaction is carried out with the highest security standards, protecting both merchants and consumers.

What is the PAN Number?

The PAN Number, or Primary Account Number, is a unique identifier assigned to each bank card, whether credit or debit. This number is essential for carrying out financial transactions, as it allows for precise and secure identification of the account associated with the card. The PAN is not only used for everyday payment operations, but is also indispensable in verifying the cardholder’s identity.

The PAN is composed of a series of digits that vary in length depending on the type of card and the issuing entity. These digits are not chosen randomly. Each has a specific purpose and contributes to the card’s security and functionality. For example, the first digits identify the issuing bank, while the following digits refer to the holder’s account and other specific details.

How is the PAN Number generated?

The process of generating the PAN Number is meticulous and follows international standards to guarantee the security and uniqueness of each number. This process aims to avoid duplications and minimize the risk of fraud.

Components of the PAN Number

The PAN Number consists of various sections, each with a specific function:

• ‍Issuer Identification Number (IIN/BIN). The first six digits of the PAN correspond to the Issuer Identification Number (or Bank Identification Number). These digits allow immediate recognition of the bank or financial institution to which the card belongs.‍
• Individual account number. The following digits, generally between the seventh and fifteenth or eighteenth, are unique to each cardholder within the issuing bank. This segment identifies the customer’s specific account.‍
• Check digit. The last digit of the PAN Number is a check digit calculated using the Luhn algorithm, a mathematical method that helps validate the authenticity of the PAN.

Process of generating the PAN Number

The PAN generation process involves several key steps:

1. ‍Assignment of the IIN/BIN. The issuing bank receives a range of IIN/BIN numbers from the competent authority, generally a card network such as Visa or MasterCard.‍
2. Generation of the Individual Account Number. Within the assigned range, the bank generates a unique individual account number for each new customer. This number is chosen following internal security procedures to ensure that no duplications occur.‍
3. Calculation of the Check Digit. Using the Luhn algorithm, the check digit is calculated. This algorithm adds certain digits of the PAN in a specific way and adds the check digit so that the result is a number divisible by 10.

This process ensures that each PAN Number is unique, valid and secure, significantly reducing the risk of errors and fraud in financial transactions.

What is the PAN Number used for?

The PAN Number has multiple uses in the financial sphere, mainly focused on identification and transaction security. Its function goes beyond being a simple number printed on a card, as it is crucial for the proper functioning of the banking and electronic payments system.

Functions and uses of the PAN Number

The PAN Number performs several essential functions:‍

• ‍Account identification. The PAN uniquely identifies the cardholder’s account, allowing transactions to be carried out without errors and with high security.‍
• Transaction authorization. Each time a purchase or payment is made, the PAN is used to authorize the transaction, verifying that the account has sufficient funds and that the card is not blocked.‍
• Fraud prevention. The PAN is checked against databases to detect suspicious activity and prevent fraud. This includes detecting unusual usage patterns that may indicate card theft.‍
• Payment processing. Payment processors, such as Visa and MasterCard, use the PAN to route and process transactions between the card issuer and the merchant.‍
• Information retrieval. Banks and service providers can use the PAN to retrieve account information in case of queries or transaction issues.

Security and protection of the PAN Number

Given its importance, securing the PAN Number is a priority. Several layers of protection exist to ensure that the PAN remains secure:

• ‍Data encryption. During transactions, the PAN is encrypted to prevent interception. Only authorized parties can access it.‍
• Tokenization. In many transactions, the PAN is replaced with a “token”, which is useless outside the transaction context.‍
• Security standards. Organizations such as PCI DSS impose strict rules on card data protection, including the PAN.‍
• Multi-factor authentication. Sensitive transactions may require additional authentication layers such as passwords or codes.

These measures not only protect the cardholder but also strengthen trust in the financial system and electronic transactions.

How to protect your PAN Number

Protecting your PAN Number is essential to prevent fraud and keep your finances safe. Several best practices can help ensure its security.

Tips to protect your PAN Number

1. Do not share your PAN: never reveal it unless absolutely necessary and to a trusted source.
   
   
2. Use secure websites: ensure the site is secure when buying online.
   
   
3. Check statements regularly.
   
   
4. Enable transaction alerts.
   
   
5. Use MFA authentication.
   
   
6. Keep your physical card safe.
   
   
7. Destroy documents containing your PAN.
   
   
8. Keep your contact data updated.
   
   
9. Use digital wallets: such as Apple Pay or Google Wallet.
   
   
10. Beware of suspicious e-mails or calls.
    
    

These practices will help keep your PAN Number secure and protect your finances from fraud and identity theft.

PAN Number: key for secure transactions

It is clear that the PAN Number is an essential component in the world of financial transactions and banking security. From its definition and generation to its various applications and protection measures, understanding how it works is fundamental for any user of banking services. The security of the PAN depends not only on financial entities, but also on each user’s individual responsibility.

At seQura, we understand the importance of security in electronic transactions. That is why we offer flexible and secure payment solutions, designed to provide a reliable and worry-free online shopping experience. Our commitment is to ensure that every transaction is carried out with the highest security standards, protecting both merchants and consumers.

If you want more information about our payment solutions, contact us.