What Is the Luhn Algorithm?
The Luhn Algorithm, also known as the “Modulus 10 Algorithm,” serves as a vital formula used to verify the accuracy of identification numbers provided by users. This algorithm is extensively utilized in the validation of credit card numbers and other sequences like Social Security Numbers (SSNs) issued by government entities.
Today, the Luhn Algorithm plays a critical role in electronic payment systems and is a standard method employed by major credit card companies.
Key Takeaways
- The Luhn Algorithm is a mathematical formula developed in the late 1950s.
- It is widely utilized for authenticating various identification numbers.
- In the financial sector, it has significantly expedited electronic payment processing by swiftly detecting incorrectly entered credit card numbers.
How the Luhn Algorithm Works
The Luhn formula algorithm was created by German Computer Scientist Hans Peter Luhn in 1954 during his tenure at IBM. The algorithm’s operations are based on modular arithmetic, a concept introduced by Carl Friedrich Gauss in the early 19th century. While the algorithm’s intricacies are complex, its primary function is to swiftly validate credit card numbers provided by customers.
The algorithm works by performing computations on the given credit card number, summing up the results, and comparing the outcome with the expected result. If the values match, the credit number is deemed legitimate; otherwise, the algorithm will reject the credit card number, indicating an input error by the user.
In everyday scenarios, consumers unknowingly interact with the Luhn Algorithm regularly. Whether making online purchases or using a merchant’s point of sale (POS) terminal, systems can promptly identify input mistakes due to the inclusion of the Luhn Algorithm in their programming. This algorithm streamlines the error detection process, expediting transaction approvals.
Real-World Example of the Luhn Algorithm
A fundamental aspect of the Luhn Algorithm is the utilization of “check digits,” which are numbers inserted within a sequence to verify the authenticity of the entire number.
In the case of credit cards, the check digit is a single number appended to the end of the credit card number. Unlike being preselected by the credit card issuer, the check digit is automatically computed by the Luhn Algorithm based on preceding numbers. By employing the Luhn Algorithm, payment processing software can accurately verify credit card numbers, including the check digit, during transactions.
Currently, the Luhn Algorithm is seamlessly integrated into popular programming languages and libraries, simplifying the inclusion of Luhn-based verification mechanisms in new software applications.
