Card activation is the process by which a newly issued payment card is enabled for use. A physical card is normally sent by post in an inactive state, so that it is worthless to anyone who intercepts it. When the genuine cardholder confirms receipt, the card issuer or its issuer processor changes the card's status, and authorizations begin to be approved.
Common methods are confirming in the issuer's mobile app, entering card details and a security code on a website, calling an automated telephone line from a registered number, or making a first chip transaction with the PIN at a cash machine or shop. The step protects against theft in the mail, a long-standing type of card fraud. Virtual cards are usually active on creation. Activation is one stage of card lifecycle management, and issuers track activation rates because unactivated cards earn nothing.