What is a Bank Identification Number (BIN)? Example of 2021

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Bank Identification Number (BIN) Definition

What is a Bank Identification Number (BIN)? Example

The term bank identification number (BIN) identifies the first set of four to six numbers that show up on a charge card. This group of numbers identifies the organization which is crucial in the process of trades and issues the card. The numbering system applies to charge cards, credit cards, prepaid cards, gift cards, debit cards, prepaid cards, and electronics cards.

If you want to read Routing Number vs. Account Number: What Is the Difference?

How Does a Bank Identification Number (BIN) Work?

What is a Bank Identification Number (BIN)? Example

The lender identification number is a numbering system manufactured by the American National Standards Institute (ANSI) and the International Organization for Standardization (ISO) to identify associations that issue various cards. The ANSI is a nonprofit organization (NPO) that produces business criteria in the USA whereas the ISO is a global nongovernmental group that creates an Assortment of criteria for different sectors including the fiscal, healthcare, clothes, and aircraft areas.

All payment cards include a BIN number. Here is a set of four to six unique amounts randomly assigned to debit cards, charge cards, credit cards, gift cards, and other payment cards. The amount is embossed on the front of the card also looks in print only below too. The industry identifier is specified by this BIN'S first chunk --classes include travel and entertainment, or airlines, fiscal and banking. The records that follow define the issuing bank or institution.3 by way of instance, the MII to get a Visa charge card begins a four, which falls under the banking and monetary category.

If you want to read Routing Number vs. Account Number: What Is the Difference?

The client enters their card details when a client makes an internet purchase. After submitting the initial four to six digits of the card, then the online merchant can discover that institution issued the client's card for example:

  • The card manufacturer, like Visa, MasterCard, American Express, and Diner's Club
  • the card amount, such as platinum or corporate
  • the card kind --a debit card, credit card, or other charge cards
  • the issuing bank state

The BIN number enables the processing of trades and also makes it possible for retailers to accept numerous forms of payment.

BINs--that might also be known as issuer identification amounts (IINs)--possess much useful software. Retailers can utilize BINs evaluate and to appraise charge card transactions. BINs allow a retailer to identify originating banks together with a contact number and their address, and if banks are in precisely the same state. The address information is also verified by the BIN given by the client. However, what's more, the numbering system helps identify identity theft or possible security breaches by assessing data, like the speech of the issuing institution as well as the cardholder.

KEY TAKEAWAYS

  • A bank identification number is your first collection of four to six numbers that show up on credit cards, credit cards, prepaid cards, debit cards, and gift cards.
  • The BIN helps retailers evaluate and evaluate their charge card transactions.
  • The amount makes it possible for merchants to accept numerous forms of payment and enables transactions to be processed quicker.

Example of Bank Identification Number (BIN)

What is a Bank Identification Number (BIN)? Example

The BIN defines the card's issuer. This issuer receives the authorization request for your trade to confirm whether the card and related account are legitimate and if the purchase sum is accessible. This procedure leads to the fee. With no BIN, the credit card processing strategy could be not able to finish the transaction and would be not able to ascertain the source of the funds of their customer.

If you want to read Routing Number vs. Account Number: What Is the Difference?

Following is a hypothetical example. Let us say whenever they fill the tank of their car client uses their bank card. After the card is swiped by them, the machine scans the BIN to find. An authorization request is set on the client's accounts. The petition is approved in a couple of seconds, and the trade is accepted if the funds can be bought or diminished in case the customer does not have sufficient funds to pay the fee.

ARTICLE SOURCES

Our needs authors to utilize primary sources to support their own job. These include government information, paper coverage, and interviews with industry specialists. Also, we mention studies from publishers that are respectable where appropriate. You may find out more about the criteria we follow in generating accurate, unbiased articles within our editorial coverage.

  1. Adjustments to this Issuer Identification Number (IIN) Conventional ." International Organization for Standardization. Accessed Sept. 27, 2020.
  2. Intro to ANSI." American National Standards Institute.Accessed Sept. 27, 2020.
  3. Bank Identification Number (BIN)." Corporate Finance Institute. Accessed Sept. 27, 2020.

Related Terms

What Issuer Identification Numbers (IIN) Inform Us

The issuer identification number (IIN) is your first few digits of a payment card number issued by a bank.

Prepaid Cards Processor Definition

A prepaid cards chip is a business that manages front to finish transactions for prepaid charge cards.

Personal Identification Number (PIN)

An individual identification number (PIN) is a numerical code used in several digital financial transactions, supplying additional account safety.

Visa Card

A Visa card is any kind of charge card that utilizes the Visa system and branded by Visa Inc.

Primary Account Number (PAN)

A principal account number is an exceptional identifier designated for the main account like a debit or credit card.

MasterCard

A MasterCard isn't any electronic payment card that employs the MasterCard system for processing trade communications.

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