Bank Identification Number (BIN)

What Is a Bank Identification Number (BIN)?

The term bank identification number (BIN) alludes to the initial four to six numbers on a payment card. This set of numbers recognizes the financial institution that issues the card. Thusly, it matches transactions to the issuer of the card being utilized. BINs can be found on different payment cards, including credit cards, charge cards, and debit cards. The BIN system assists financial institutions with recognizing fraudulent or taken payment cards and can assist with forestalling identity theft.

How Bank Identification Numbers (BINs) Work

The bank identification number is a numbering system developed by the American National Standards Institute (ANSI) and the International Organization for Standardization (ISO) to recognize institutions that issue payment cards. The ANSI is a nonprofit organization (NPO) that makes business standards in the U.S. while the ISO is an international nongovernmental group that makes standards for different industries.

All payment cards accompany a BIN number. This is a set of four to six numbers haphazardly assigned to debit cards, credit cards, charge cards, gift cards, electronic benefit cards, and other payment cards. The number is embossed on the front of the card and shows up in print just below also. The primary digit determines the major industry identifier. The digits that follow indicate the responsible institution or bank. For instance, Visa credit cards start with a four, which falls under the banking and financial category.

At the point when a customer makes an online purchase, the customer enters their card subtleties on the payment page. Subsequent to presenting the initial four to six digits of the card, the online retailer can distinguish which institution issued the customer's card including:

• The card brand or Major Industry Identifier, like Visa, MasterCard, American Express, and Diner's Club
• The card level, for example, corporate or platinum
• The card type
• The responsible bank country

At the point when the customer starts a transaction, the issuer receives the authorization request to check in the event that the card and account are legitimate and whether the purchase amount is accessible. This cycle brings about the charge being either approved or denied. Without a BIN, the credit card processing system would not be able to determine the beginning of the customer's funds and would not be able to complete the transaction.

The BIN number permits dealers to acknowledge numerous forms of payment and permits quicker processing of transactions.

Special Considerations: What BINs Are Used for

BINs have different helpful applications. The primary purpose is to permit traders to assess and survey payment card transactions.

They additionally permit dealers to recognize starting banks alongside their address and telephone number, and whether giving banks are in a similar country as the gadget used to make the transaction. It additionally checks the address given by the customer.

Be that as it may, all the more importantly, the numbering system recognizes identity theft or potential security breaks by looking at data, like the address of both the responsible institution and of the cardholder.

Bank identification numbers are additionally regularly alluded to as issuer identification numbers (IINs).

Illustration of a Bank Identification Number (BIN)

Here is a speculative guide to show how BINs work. Suppose a customer utilizes their bank card at the gas pump when they top off their tank. When they swipe the card, the system examines the BIN to identify the specific institution that issued the card. An authorization request is then put on the customer's account. The request is authorized inside a couple of moments, and the transaction is approved in the event that the funds are accessible or declined in the event that the customer needs more funds to cover the charge.

The Bottom Line

Bank identification numbers are utilized to recognize which payment cards have a place with which giving financial institution. However, beside that, they assist with working with financial transactions and guarantee that consumers are protected from identity theft and fraud. That is the reason it's so important to keep your financial data, including your BIN, confidential.

Keep in mind, your bank won't ever call or send you an email to illuminate you that your account data has been compromised. On the off chance that you at any point receive a call, don't draw in with the trickster. All things considered, hang up and advise your bank. You can likewise file a grievance with the FTC on the organization's website.

Features

• A bank identification number is the initial four to six numbers that show up on payment cards.
• The number permits traders to acknowledge numerous forms of payment and permits transactions to be handled quicker.
• BINs can assist financial institutions with distinguishing fraudulent or taken cards and forestall identity theft.
• BINs are found on credit cards, charge cards, prepaid cards, debit cards, and gift cards.
• The BIN helps shippers assess and survey their payment card transactions.

FAQ

How Do You Use a Bank Identification Number?

Consumers generally don't utilize BINs however it is important to understand what they mean. The main digit is the major industry identifier while the excess digits determine the giving financial institution.When you make a purchase or transaction, the responsible institution receives a request for authorization. This request endeavors to confirm the authenticity of the account and whether the funds are accessible. In the case of all that checks out, the transaction is approved. In the event that not, the institution declines it.

What Is a Bank Identification Code?

A bank identification code, which is otherwise called a bank identifier code, is a special code comprised of eight to 11 digits. An international standard distinguishes a bank or non-financial institution at whatever point somebody makes an international purchase or transaction. A BIC can be associated or non-associated. The former is part of the SWIFT network and are called SWIFT codes while the last option is generally utilized for reference as it were.

Why Are BIN Numbers Important?

BINs permit shippers to acknowledge various payments simultaneously. They likewise make payment processing a lot of faster.BINs assist banks and financial institutions with recognizing cards that have been compromised or taken on the grounds that it gives data about the type of card being utilized, the type of bank, and other data about the responsible company and cardholder.

What Is BIN Scamming?

BIN defrauding is a fraud scheme. It happens when a fraudster calls imitating somebody from your bank, claiming that your account data has been compromised. The con artist might give you data to try to gain your trust. Whenever you're snared, they try to affirm the number of your card and start with asking where you bank. When they have that data, they give you the bank identification number and ask that you affirm the excess digits on the card alongside some other data they can get from you.