Bank Identification Number (BIN) is the number which identifies the issuer of a credit card, also known as Issuer Identification Number (IIN). Each issuing bank can issue credit and debit cards only under a BIN set for that purpose by the relevant credit card association. The BIN is used as the first 6 digits on each credit card issued, and therefore identification of credit card issuer is immediate.
Sophisticated international merchants should add BIN check within their processing workflow. The BIN check result should be used both for acquirer routing as well as for anti fraud score set.
And how will that increase the credit card processing volume at a lower risk? One question at a time… Credit card processing volume will increase as different cards, issued by different issuers will be routed, through different merchant accounts to different acquirers for processing. As different acquirers have different capabilities, risk mechanisms and preferences, some will decline 100% of a certain issuer, while others will have his cards passed with flying colors…
Regarding lower risk – use the BIN check to match issuing bank country with customer’s country address. Whenever those two don’t match, show a higher score and perform additional anti fraud checks prior to charging the card.
As funny as it may sound you don’t need to invest in sales and marketing or penetrate new markets to show an immediate improvement in your bottom line. Optimizing your credit card processing flow will immediately have the same effect – an effect you can work with on years to come!
Gidi Argov, Founder and CEO
www.CreditCardProcessing-r-us.com
