Understand the Components of your Credit Card


Statistics indicate that in 2022, approximately 73 million credit cards were issued in India. This proves that credit cards are overtaking liquid cash for financial transactions. This financial tool is a favourite amongst consumers as it helps meet financial requirements during emergencies and offers convenience in payments along with various rewards. This comprehensive guide will help cardholders familiarise themselves with the various components of a credit card and gain a better understanding of the functioning of a credit card.

Every credit card has the following details:

1. Brand Logo

The Issuing Bank Name is displayed on the credit card with its logo.

2. Card Variant

Every bank issues different types of credit cards. For instance, the card offered by the bank could be Platinum, Neo, League, etc.

3. Card Network

The card’s network logo is also displayed on the card, like VISA, MasterCard, RuPay, etc.

4. EMV Chip

This small chip found on the card authenticates the data on the card. It generates a unique code for every transaction done using the card. This chip keeps the card secure, and fraudsters cannot counterfeit it easily.

5. Name and Number of the Cardholder

The cardholder’s name is printed on the front of the card, as registered with the bank. The card also comes with a unique 16-digit number.

6. Card Validity

It is the period till which the card can be used. The month and year are mentioned on the card. The card cannot be used post the date mentioned. This data helps cardholders renew their cards on time.

7. NFC (Near Field Communication) Symbol

The symbol resembles that of a WiFi symbol, but it is horizontal. It indicates whether or not the card can be used for “Tap to Pay”.

8. Magnetic Strip

The credit card has a magnetic strip that has all the data regarding the account. This can be read when the card is swiped at the time of purchase.

9. CVV Code (Card Verification Value)

This is mostly a 3-digit number that can be found on the back of the card. A few cards could also have a 4-digit number mentioned on the front. It is an additional layer of security to protect the cardholder from thefts and fraud while transacting online.

10. Signature Area

This is the space provided for the cardholder to sign their credit card.

11. Helpline/customer care contact

Credit cards also share a helpline or customer care number to contact them when in need. You can find these details on the back of the card.

In conclusion, to manage the usage of one’s credit card effectively, one must understand all the components of their credit card. From symbols like the NFC to the chip on the card to the helpline number, cardholders must be aware of every part of their credit card. This will help them in using their card responsibly and effectively. To know more about credit cards, refer to Federal Bank's Guide for Beginners .