What is a PAN?

PAN stands for Primary Account Number. It is the unique 12 to 19-digit number that appears on payment cards such as credit cards, debit cards, and prepaid cards.

Here's a breakdown of what a PAN entails:

• Unique Identifier: The PAN serves as a unique identifier for a specific payment card and links it to the cardholder's account at the issuing financial institution.
• Card Details: It contains information about the card issuer (bank or financial institution) and the type of card (e.g., Visa, Mastercard, American Express).
• Payment Processing: The PAN is a crucial piece of data used to facilitate communication between all parties involved in processing a payment transaction. This includes the merchant, the acquiring bank, the card network (like Visa or Mastercard), and the issuing bank.
• Security Sensitivity: Due to its role in payment processing, the PAN is considered sensitive data and must be protected to prevent fraud and unauthorized access. The Payment Card Industry Data Security Standard (PCI DSS) provides guidelines for the secure handling, storage, and transmission of PANs.

Key aspects of the PAN

• Issuer Identification Number (IIN) or Bank Identification Number (BIN): The first six to eight digits of the PAN identify the issuing institution.
• Account Identifier: The following digits (excluding the last one) uniquely identify the cardholder's account.
• Check Digit: The last digit is a checksum used to validate the PAN's accuracy using an algorithm like the Luhn algorithm.

In summary, the PAN is the fundamental account number on a payment card that enables transactions and requires stringent security measures throughout the payment ecosystem.