Bank Identification Number (BIN)

What Is a Bank Identification Number (BIN)?

A bank identification number (BIN) is the first four to six numbers on credit or debit cards. These numbers represent the financial institution that issues the card. The BIN matches transactions to the card issuer. The BIN system helps financial institutions identify fraudulent or stolen payment cards and prevent identity theft.

How Bank Identification Numbers (BINs) Work

The bank identification number was developed to identify institutions that issue payment cards. The number appears on the front of the card. The first digit describes the major industry identifier. The following digits relate to the issuing institution or bank. For instance, Visa credit cards start with a four for the banking and financial category.

When customers make an online purchase, they enter their card details on the payment page. After submitting the first four to six digits of the card, the online retailer knows which institution issued the customer’s card. They can also identify:

• The card brand (ie Visa, MasterCard, American Express)
• The card level (ie corporate or platinum)
• The card type
• The issuing bank’s country
  When the customer initiates a transaction, the issuer receives the authorization request to verify whether the card and account are valid and if there are enough funds for the purchase. Through authorization, the charge is either approved or denied. Without a BIN, the credit card processing system couldn’t determine where the customer’s funds come from and would be unable to complete the transaction.

What Are BINs Used for?

• BINs have several usages. Here are a few common applications for BINs.
• Allow merchants to evaluate and assess card transactions
  Help merchants identify originating banks, their addresses, phone numbers, and whether issuing banks are in the same country as the device facilitating the transaction.
  Verifies the address provided by the customer
  Helps flag identity theft or security breaches by comparing data (eg the address of the issuing institution and the cardholder)
  Increase checkout speed and efficiency for credit or debit card transactions via quick card validation

Why Are BIN Numbers Important?

BINs allow merchants to accept multiple payments simultaneously and make speed up payment processing.
BINs help banks and financial institutions identify stolen cards because they provide information about the location of the card issuer, which bank issues the card, and the card type. Merchants or companies can compare this information to cardholder data to identify fraudulent charges.

Is the Bank Identification Number the same as the account number?

A BIN is not the same as an account number. The BIN is the first 4-6 digits on a payment card that identifies the issuing institution and card type.
An account number is a unique number assigned to an individual’s bank account. It identifies the account holder and is crucial for making deposits, withdrawals, and transfers. While the BIN identifies the issuing institution, the account number refers to the specific account within the institution.