Validating a credit card
The primary use of credit card validation is to allow merchants to spot false credit card numbers before requesting an authorization from the credit card company.
Merchants who suspect a case of fraud can identify fraudulent payment information more quickly and avoid the time and money losses associated with beginning to process an order that has no chance of being completed.
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Validating a credit card refers to the process of running a computer algorithm that performs calculations using a credit card's number.To perform a credit card validation, a merchant only needs to type the credit card number, which is between 13 and 16 digits, depending on the credit card company, into a computer program that runs the algorithm.Some simple validation algorithms are possible to perform by hand, but the likelihood of error is much greater.This is the point in the process where a card may be rejected for insufficient remaining credit.Credit card companies will also decline expired cards or cards that represent closed accounts.
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Most of information comes from https://en.wikipedia.org/wiki/Payment_card_number.