Credit Card Scanners: Everything You Need to Know

Credit card scanner is a bit of an ambiguous term. What I think of when I think of a scanner is an app on a device to scan credit cards without a special machine so a shopkeeper can charge me for a purchase. However it can also refer to a credit card machine as well, for this article we’ll focus on the former.

How does a credit card scanner work?

A credit card scanner is usually a piece of software that accesses a devices camera when a customer wants to checkout and pay for something you’re selling. It can be used in store to take card payments or online to accept e-commerce payments too. The way it works is it identifies the card number on the front when a customer holds it to the camera and then it does the same for the CVV on the back. The best thing about credit card scanning apps is they don’t require any kind of extra device to operate.

Which cards are OCR and AI capable of scanning?

Knowing which bank cards can be scanned is useful information.

The majority of credit card scanners can read all types of bank cards, including those with printed or embossed text, numbers, and logos.These items can be read and data taken automatically from them.
A smart card scanning solution comes in helpful when it comes to automating the process of reading and checking bank cards, as well as the data entry that goes along with it, which is generally done by clerks.

Credit cards and debit cards are the most regularly used bank cards. Credit card scanners can pull the following data from credit cards:

Card type
Credit card processing network
Credit card issuer
Card holder name
Card number or PAN
Expiry date
CVC (optional)
Signature (beta)

From debt cards the following data can be extracted:

Card type
Debit card network
Bank name
Card holder name
Bank account number or IBAN
Card number
Expiry date
Signature (beta)

What is automated debit and credit card scanning and how does it work?

Let’s have a look at how a card scanning system works now that we know which cards can be scanned.
From here, it may get a little technical, but we’ll try to explain everything in layman’s terms.

Providing an image or PDF file of a debit or credit card to our API is the first step.Simply take a picture with your smartphone and upload it to the mobile app.Credit card scanners erase the backdrop and rectify any rotations automatically.

Many credit card scanning apps include SDKs to help you incorporate a camera feature into your app if you don’t have one yet. Square recognition, cropping, perspective correction, and quality detection are all included in this camera scanning kit.

The image is optimized and transformed into a raw text file as soon as the photo or PDF file is received.
All of the text from the card is extracted in this step, but it is not yet structured.
As an example, consider the following:

From here, you can use the extracted data as you want, such as sending it to your database for further processing.

All of this happens automatically in a matter of seconds, with no human intervention.

Why should you scan debit and credit cards automatically?

Card scanning systems have several practical benefits that can help your organization move forward, in addition to being totally automated without the need for manual actions.
Including:

Cost Cutting – Checking and processing bank cards by hand can be a time-consuming process for both you and your consumers. Consider the requirements for human data entry, card verification, and archiving that come with it. By automatically extracting data from bank cards, card scanning systems can save you a lot of time and thus labor costs in this process.Of course, there is no magic formula, but effective automation often results in cost savings of 40% to 75%, with payback periods ranging from a few months to several years.

Speeding Up Commerce – It’s only natural that automated processes will be faster than manual ones.
Consider the process of card verification. When done manually, reviewers must go over multiple documents, double-checking facts and looking for fraud. Humans aren’t nearly as fast as computers, so automating this procedure can save you a significant amount of time and money.

Error Reduction – Did you realize that manual data entering almost always results in errors? Error rates normally range from 0.55 percent to 3.6 percent, while they have gone as high as 26.9 percent.
Because typing on a smartphone isn’t the most pleasurable experience, these rates may be substantially higher. Fortunately, automated processes and computer programs are much better at this.
With our card scanning solution, you can be confident that you’re getting the greatest data extraction software for bank cards, lowering the danger of human mistake.

Fraud Prevention – Not only does card scanning system have OCR technology, but it also has AI-based picture manipulation detection. This entails recognizing incoherent pixel patterns, such as unexpected illumination changes or text color shifts. As a consequence, the software recognizes fake photos in seconds, allowing you to screen out fraudulent applications before they cause you any problems. Furthermore, most credit card scanners can compare the information on a person’s card against external databases.These can be consulted automatically if you have blacklists or fraud databases with known fraudulent cards, for example.

Automated debit and credit card scanning has a variety of applications.

Scanners use OCR and machine learning to extract as much information as possible from debit and credit cards.The most frequent use cases are listed below:

-Payments via credit card should be made as simple as possible.
-With credit cards, customers can be onboarded digitally.
-Credit card scanning for automated age verification
-Validation of a bank account (IBAN) by debit card scanning
-Data from bank cards is automatically anonymized.
-Payments via credit card should be made as simple as possible.

For purchases on many websites and applications, customers must key in their credit card numbers.
This might be a tedious procedure, and it’s easy to make a mistake doing this, credit card scanners make capturing credit card information much easier. Users may quickly complete payment forms by snapping a photo of their credit card or uploading a PDF file of their credit card to our API. Fields are detected, localized, and the text in them is automatically extracted and placed into payment forms using the correct OCR and data extraction models.

Because users no longer have to enter information individually, the UX of an application or checkout will substantially improve. Form-filling will be easier than ever with our credit card scanner, resulting in increased checkout success rates and, ultimately, higher revenues.

With credit cards, customers can be onboarded digitally.

Many online payment and trading platforms require a person’s credit card details at sign up in order to maintain a reliable and compliant service. Verifying that the individual trading on the platform is who he says he is and that he is using a genuine, authorized credit card is a top priority.

While many retailers still undertake these checks manually, an increasing number see the need for automation and operational efficiencies. The greatest technologies for accomplishing these are optical character recognition (OCR), machine learning, and artificial intelligence (AI).

Customers’ identities are automatically validated in the bitcoin sector, for example, by checking the authenticity of their credit cards and matching the information on them with their identity documents (e.g. name of the card holder).

Credit card scanning for automated age verification

Companies may do identification checks as part of the client onboarding process to ensure that they are onboarding the correct consumers for age-restricted services like alcohol or tobacco websites, as well as video games with undesirable content.

Credit card verification necessitates the use of procedures such as Card Verification Value (CVV), Address Verification System (AVS), and 3D Secure to show that cardholders are in possession of the card.
This transfers ownership to the individual who makes the online purchase, with the exception that the customer must be at least 18 years old to apply for a credit card.

Although this assumes that the vast majority of credit card holders are adults, it’s a far more complex age verification approach than simply asking customers to fill out a form with their date of birth.

Credit card scanning for automated age verification

Validation of a bank account (IBAN) by debit card scanning

IBANs (Foreign Bank Account Numbers) are commonly used in both domestic and international payments.
The IBAN is often a source of error when manually typed into forms because it is a rather long string of digits and numbers.

Companies can use credit card scanners to verify that the IBAN is valid and to identify specific bank accounts. It identifies data structures and performs format, digit, and length validations to assist reduce unsuccessful transactions due to mistyped IBANs.

By verifying the card holder name on the bank card with a person’s identity certificate, companies can validate an IBAN and even offer confirmation of IBAN ownership.

Data from bank cards is automatically anonymized.

Companies may have amassed thousands, if not millions, of papers containing personally identifiable information, such as bank card details, over the years. Most of the time, they are unaware of what is truly within, let alone how to efficiently navigate through them.

These organizations can use credit card scanner OCR API to recognize certain combinations of digits in documents, such as IBANs or credit card numbers, and anonymize them by erasing or blacklining those lines on a document or deleting the papers entirely. These apps can also anonymize card data from the start by blacklining particular parts, such as the final three digits of the IBAN, after a bank card scan.
Normally, this is a time-consuming, costly, and difficult task, but with our clever approach, it’s as simple as 1-2-3.

What are the best credit card scanner apps?

There are a number of credit card scanner apps, most of them have very similiar offerings but the best credit card scanners are:

Chargestripe
BlinkCard
SmartEngines
Card Scan
DyScan
SwipeSimple
Klippa