Decoding Credit Card Number: What do the digits, CVV and expiry date mean?

Credit cards allow you to buy things and pay for them later. A credit card comes with a 15- or 16-digit number embossed on it, which is the primary identifier for the card and its account/accountholder. 

The credit card number and the expiry date of the card are important for authorising transactions, both digital and physical ones. While the number seems to be random, each digit has a specific role in validating the card. The sequence of digits is based on a specific pattern across networks and institutions. 

Let’s see how a credit card number is structured:

Expiry date

The expiry date of a credit card is important for its functionality. It depicts when the card stops working and validating transactions. It is usually in a ‘MM/YY’ format, with the starting two digits representing the expiration month and the last two digits representing the expiration year. Once a card expires, the cardholder needs to apply for a new card from the bank (or the financial institution). 

The expiration date exists to boost security and ensure cardholders receive updated cards at regular intervals. The updated cards have the latest security features, and the cards’ physical conditions also remain fit for use. 

Card Verification Value (CVV)

A Card Verification Value, also known as the Card Verification Code (CVC), is the identification number of a credit card used as a security code to verify the card's physical presence during online transactions. It’s usually a three or four-digit number imprinted on the flip side of the card. A CVV prevents unauthorised use of the card in online transactions. As it is not imprinted on the magnetic stripe or the credit card’s chip, it is more difficult for fraudsters to steal the information and access funds.