Do Credit Cards Have Routing Numbers?

Unlike a bank account, credit cards don’t have any routing numbers. Credit cards have a credit number and using the credit number a credit card connects the bank account of the cardholder with the credit card issuer. Many people think that a bank account and a credit card are quite similar. But the truth is; a credit card is completely a different product than a bank account.

Key Takeaways

• A credit cardholder can borrow money from the bank and make various payments for goods and services using the card
• A routing number is a 9-digit number that is used to identify a bank or financial institution
• Routing numbers help the bank and other financial institutes accurately process financial transactions
• Only the federally chartered and state-chartered banks have the authority to maintain an account at a Federal Reserve Bank
• Usually, a credit card has a 16-digit number and it is the account number for a credit card       

What Is A Routing Number?

A routing number is a 9-digit number that is used to identify a bank or financial institution. A routing number is a very important information and it will require during the clearing of funds for online transactions and when processing checks. Routing numbers help the bank and other financial institutes accurately process financial transactions. The online banking system won’t be able to function properly without the correct routing numbers. But you have to understand that not all financial institutes can have a routing number. Only the federally chartered and state-chartered banks that have the authority to maintain an account at a Federal Reserve Bank can issue the routing numbers. Routing numbers are not the latest technology; it was first established by the American Bankers Association in 1910. You can easily find the routing number of your bank account. If you have a checkbook then open it and you will see the routing number at the bottom left corner of the check.

Why Don’t Credit Cards Have A Routing Number?

The reason credit cards don’t have routing numbers is credit cards don’t need routing numbers. A routing number is required to complete an online transaction or wire transaction but that’s not what credit cards are used for. If you check a credit card then you will see there is a 16-digit number on the credit card. This 16-digit number is considered the account number for a credit card. The 16-digit number works as the link between the credit card issuer and the cardholder. So when you use your credit card, the card issuer processes your payment using this number. 

The purpose of a credit card is not to send wire transfers or direct deposits. In fact, when you are using your credit card you are not spending your own money. It is the bank or the credit issuer who is granting you a certain amount of credit that you can use every month. So when you are making a payment, the bank is paying the merchant and you don’t have to pay the bank immediately. Therefore, a routing number is not required for the credit card. Moreover, the credit card payment settlement process is also different from a wire transfer or online payment. There is no need for a routing number to process the transaction. That’s why there is no routing number for credit cards.

What Are Credit Card Numbers Used For?

We already know that a credit card has 16 numbers. But, do we know what these numbers are used for. Credit card numbers have identifying information that verifies the payment and completes the processing of the payment. Let’s check what the numbers on the credit card mean.

1. The First Number: The first digit of the credit card identifies the type of the card. If your credit card number starts with a 3 then your card is an American Express, Diner’s Club, or Carte Blanche. If your number starts with 4 then it is a VISA card. The number of a Master Card starts with 5.

2. Next 6 to 8 Digits: The next 6 to 8 digits of the credit card are known as the Issuer Identification Number (IIN). These numbers identify the credit card issuer like the bank. These numbers work just like the Bank Identification Number (BIN).

3. The Remaining Digits: The remaining digits are the account number of the credit cardholder. These numbers are unique for every credit card holder and they are used to identify a specific account at your financial institution.

What Information A Credit Card Contains?

A credit card contains the following information – 

1. Issuer Name: In a credit card you will find the name of the issuer; it might be a bank or a financial institute.

2. Cardholder Name: You will also find the name of the cardholder on the credit card. This information helps the merchants to verify the holder of the credit card.

3. Credit Card Number: There is a 13 to 16 digit number on a credit card and it identifies the financial institution that has issued the credit card. It also specifies the account number of the cardholder.

4. Expiration Date: Every credit card has an expiration date printed on it. It helps the merchants verify if the card is valid or not. If your credit card expires then you have to collect a new credit card. 

5. Security Code: On the back of your credit card you will find the security code. Here, the security code works as an extra layer of protection for your credit card.

6. Magnetic Strip: The magnetic strip on your credit card holds your credit card number, name, and expiration date.

FAQs About Do Credit Cards Have Routing Numbers

References:

1. https://makechange.aspiration.com/do-credit-cards-have-routing-numbers/
2.https://www.reddit.com/r/personalfinance/comments/6x3lb8/do_credit_cards_have_routing_numbers_in_order_to/

Last Updated on October 26, 2022 by Magalie D.