Bank Identification Number: Benefits and Limits

Credit, debit, gift and prepaid cards are frequently used today by consumers in making payment for their purchases both online and offline. This is because many merchants prefer receiving payments with these cards owing to the huge advantages and features they have. However, despite the numerous benefits associated with the use of cards in making and receiving payments, fraudsters are making deceitful transactions with cards causing merchants to pay chargebacks. It is very difficult to differentiate between fraudulent transactions and genuine transactions. Fortunately, the BIN of card can be used in reducing the occurrence of fraudulent transaction. The BIN enhances the security and helps in the prevention of fraudulent transaction.

BIN which is fully called bank identification number refers to the first six digit numbers of the 16 digit numbers that make up a card number. Issuer identification number as it is also called holds a great deal of information about a card. With binchecker, you will be able to find out the card type, brand, the bank that issues the card and the country where it is issued from. If you put these pieces of information together and then match it with the one provided by a consumer to see how they correspond, you will be able to discover if there is any discrepancies which are indications that transactions may be fraudulent. Discrepancies between the data shown by the BIN and the data provided by the card holder will call for strict measure to be taken to ascertain the authenticity of the transaction. Such discrepancies are enough for a merchant to decline a transaction.

To make BIN more effective, software developers have introduced BIN identification number software which comes with a database that contains BIN of different cards. Businesses that are using BIN checker as it is also called easily check the BIN of their consumers’ cards and obtain the information they contain. In this way, they will easily identify valid cards before approving transactions. It is important for businesses to use BIN checker to verify authenticity of transactions before approving them so that they will avoid chargeback. With such software, it will be difficult to make purchases with stolen cards.

Limits

However, there is always a limit to what BIN can do or the credit card fraud that can be prevented with a BIN checker. BIN verification with a BIN checker cannot be used to prevent a phasing scam. In this type of scam, a credit card fraudster obtains card details of a card user by tricks using a fraudulent website. It is also possible for a scammer to hack into the merchant database and obtain card details of their customers. Phishing is now widely used by scammers and it has weakened the efficiency and effectiveness of BIN checker as a tool to prevent credit card fraud. However, the reality of phishing does not eliminate the usefulness of BIN checker to zero. It only requires merchants to enhance their security by taking other measures such as requesting for CVV before approving transactions paid for with credit cards.