Numbers have always remained an integral part of our life. Man at the earlier time first learnt counting. With economic rise and fall Humans learnt to value numbers. After the establishment of banks, we found ways to preserve money in the form of numbers. This led to the formation of certain security measures. These measures of course dealt with numbers. One such important security measure is BIN or the "Bank Identification Number ' This typically involves a large set of different digits usually present on the credit cards issued by banks. These numbers are usually long and are present on different cards differently. You must be wondering many times what it is for? Many of us simply neglect it thinking of it as some code. But what kind of code actually is it?
This is very important to find out. Why is it present there in the first place? Not only the credit cards being composed of the sets of numbers. But we find these numbers on prepaid cards too. On the tracking services too. So, what do they actually represent? Why are they so important? We will tell you about all these things today. So that, the next time you open up your credit card for payment. You become more than aware of this security code. Rather than believing it as a useless code of numbers.
BIN or Bank Identification Number is actually a set of numbers which appears on the credit card. It is used to identify the type of bank. In other words, every time a bank issues a credit card. It uses some numbers over it. These groups of numbers are entered into the bank data list. This data list is important in two ways. First, it helps the bank to issue cards and have the record of the card they issued. Secondly, it helps the user in finding that the credit issued to them is genuine. This is actually a way to find out the bank which issued the card. Also, it helps in finding out whether a bank is registered or not. It is of four to six numbers in length. It also helps to carry out necessary transactions.
As, with the help of BIN, one can easily find out the bank which issues that card. One more interesting thing is every bank has a unique code. This code differs from that of another bank. So, you can easily find the bank. It is most of the time encoded within the card. The coding is done by a magnetic strip. The number can be identified easily. BIN is also present within the debit cards too. They have a very unique meaning as per use. Breaking them can make you find what they convey. A card starting with number 1 means it is an airline card.Similarly, other cards mean other things. The numbers on the whole represent a whole account. For this purpose every card is distinct from the other one.
Before I begin, let me share with you my personal experience. As a content writer, I am always researching new facts. During research, I found one interesting fraudulent situation. There was a whole racket involved. The group used to steal the personal information of customers. Though the criminals had done this many times earlier. But this time the fraud extended overseas. The victim was a businessman working in Taiwan. His bank account was in the USA at that time. Almost US $300,000 was drained from his account. This led to a feud. And immediate action was taken. This whole incident was regarded as the worst in banking history. It was because this was almost the first time. The scam was not limited. It extended to almost two different countries. Such a mega-level scam woke the banking systems all over. This led to the formation of more stiff banking rules. And this takes us back to the present.
By now, we all are familiar with a set of numbers. These numbers are important for security purposes. As they verify and secure data. But another important thing is why BIN's are required? So, the answer is simple. They are required for eliminating any risk of fraud. Because they are specific. Specificity comes with regard to the card being issued. When every single card is specific. The chances of identity theft are very less likely to happen. As the banking rules clearly issue a card to the specific account holderat a time. All the details of that account holder are enlisted within these numbers. When the details are cleared. There is no or very little chance of having a fraudulent activity. This secures the account holder. It also becomes beneficial for the bank. This saves the bank in hand from any bad reputation. Thus, becoming essential for both the bank and its account holder.
As stated earlier, it helps in identifying the transaction. This one feature becomes the key feature in international trade. On an international level, it becomes significant for traders and business holders. It helps them in estimating that from where the transacted amount has been delivered to? How this transaction is going to be a profitable one. Gross profit and loss are calculated with the help of it. Vast varieties of payments can be accepted with the help of it. Because, it also helps to find out the country which issued it. It assists in customer verification too. Once the process of customer verification begins, The international payment procedure starts. Hence, it has developed as the constituent of international trade.
E-Commerce also involves BIN tracking. The moment a customer adds its credit card number. The seller instantly finds out the details and type. This helps him in finding out the mode of payment. This also tells about the person who is paying the amount. This actually happens in between three parties. One is the buyer who is using the credit card. Other is the seller monitoring the payment. The last one is the Bank who checks and verifies. Once the number is entered. Automatically generated transaction requests are sent to the bank. The bank then processes this further. It checks that the transaction request is submitted by a valid account. Not only this but the account actually has the amount to pay off.
For checking BIN numbers, there are various tools and websites. One such tool is called BIN checker tool.
It is a specialized tool organized by banks to check the BIN Numbers. It actually operates on the basis of the data which is being enlisted in the database. Usually a bank always has an authorized section where BIN numbers are checked. All the data-base is mentioned within the banking list. When a specific BIN number is entered. It checks out the details from the list and then verifies it. Though mostly bank websites provide such approval details. Yet, there are certain independent websites operating. These websites take information about the data-base. Based on these details, they allow users to check out their BIN numbers using their specific tool.
This tool is used to check whether or not the BIN number is a valid one. This helps the user to check the details. It is also used by the banks to approve the details. It helps the banks to process the information later on. This information then leads to transactions. In other words, the transactions are made possible through verification. This verification involves BIN checking. The BIN checking is done through the tool.
A BIN checker is used to verify the data in:
Whenever you are carrying out a transaction. The bank approves it through checking your credit cards. This involves verifying it through the information which is enlisted in the database. From this information, the bank gets validation and further payments are made.
Within online shopping, the seller gets the validation from the buyer. As soon as the credit card number is entered.The seller gets all the payment details. Thus, it becomes convenient to keep track of payments. The chances of fraud in payments becomes minimal in this case.
The Bank Identification Number has become an important tool in finding the correct account details. The verification system has played a larger part in maintaining control.Because in the past, online theft was a common thing. People feared to rely on online contracts in the past. Because, most of the time fake services used to ditch users. Besides, banking on a huge scale reported online frauds. But with this tool, there has been a reduction in the number of frauds. So, this serves as a safe tool to avoid online frauds. So, the next time, you take out your credit card. Don't just think of this set of numbers as an ordinary one.Because now you know, it is something more than ordinary number code.
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