As far as BIN databases go, if you are an online merchant it could be incredibly wise to have access to a database. You may think that credit card processors are the only ones who may have a possible use or need for access to a BIN database. Then again, you may want to think twice. It does not matter whether your company is a huge financial giant or a small backwater, mom and pop store on the web, the BIN system can work for you.
Around about 10 to 15 years ago, it was extremely easy for criminals to get away with serious amounts of credit card fraud. Back then, we didn’t have a way to instantly approve a credit card transaction and in turn, purchases had to be processed manually. However, with the advent of real-time credit card processing and the information that the BIN system has within, credit card fraud is no longer an easy and attractive crime.
With modern day technology, whenever a purchase is made with a credit card, the card gets swiped and the BIN number of that card instantly links it to the issuer. The transaction will not be approved if the card is not in good standing. Also if the card has been cancelled, reported lost or stolen, the transaction will not be approved. Security is one thing that the BIN system is good for; however, it also has other advantages.
Did you know that credit card companies are not the only ones using the BIN system?
Even all of those shopper savings cards out there utilise the BIN number system. The BIN on these types of cards can assist the issuing store to track your savings, and because of this, it may help you to qualify for any promotions or other special offers that a department store may be running.
The BIN system is also used by insurance companies to track your insurance usage and to help them to prevent insurance fraud. This is done by matching claims to a BIN. Insurers can then see if any ‘questionable’ claims are being made and medical providers are able to verify the insurance status of a patient. When dealing with insurance providers, it can also help to speed up the process times for claims and thus making the process less stressful for the customer.
There are thousands of online stores around today and many of them are reaping the benefits of the BIN system. A BIN database can help these stores determine if a card that they are accepting has a high risk of fraudulent activity. Combined, websites lose millions of dollars each and every year because of online credit card fraud. Employing a BIN system is one of the things that can help to limit the effects.
Many businesses, particularly those who trade goods online, can benefit from access to a BIN database. The only enemy that the BIN system really has is those who would prefer to exploit the credit card numbers contained within the database. Unfortunately, there are many shady individuals out there, but thankfully the BIN system limits the capabilities of many of these people.