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What is the BIN or Bank Identification Number
Bank Identification Number are the first 4 to 6 numbers that primary form the card number on any of your payment cards. These numbers are represents the institution on the bank that has provided you the Credit Card. The BIN is very important for the issuer to charge your card by processing matching actions.
BINs can be seen in credit cards, debit cards, prepaid cards, electronic benefit cards and even gift cards. BINs may also be referred to as Issuer Identification Number because a financial organization who issued the card.
Why Use BIN on Credit Cards?
The BIN makes transactions smoother and secure. This is because of the pre-configured numbering system that only banks are able to sort out. While providing an extra layer of security along the process. BINs also helps in getting rid of any errors that might come into place hence makes all card related activities much faster.
The following are the roles performed by BINs:
- The bank identification number is significant as it helps to identify the purchaser. It is an essential signal with the help of which the bank that has issued the card can identify the customer while the merchant can identify the bank that is purchasing on behalf of the customer.
- The bank identification number helps to identify the country of origin for the issuing bank or financial organization. This helps and building compliance with the various export laws that are prevalent in various countries.
- You will be able to confirm validation with the help of credit cards. The customer is generally asked to enter the credit card number along with the type of credit card that is being used. With the help of this validation can be confirmed then you will be able to make purchases with no issues.
- You can make sure that a particular merchant accepts your credit card before starting the payment process. You will not have to go through the entire validation process only to find out that the merchant does not accept your bank.
- With the help of the bank identification number, you can get rid of monthly payment programs as it identifies prepaid credit cards.
What is The Purpose of BINs?
Online transactions go through a two-step process which is Authorization and clearance. The BIN is significant here as it helps in completing the first step of this process that is an authorization. With the help of the BIN the issue that is a credit card company on the bank is identified and received a request for authorizations that determines whether your credit card is valid to make the purchase. Of course, this will be based on the restrictions and limits on the card or not.
Understanding the importance of the bank identification number is very important as it helps you to make every transaction possible with your merchant, especially that online.
Use a BIN Checker Tool To Validate a Bin
To validate a Bank Identification Number you can use various tools that checks entered BIN if valid or not. Please note that some of these services are not free. This is purely for Institution and Business purposes for checking Credit Card BIN.