BIN means Bank Identification Number which is actually an initial 4 to 6 numbers appearing on your credit card. It uniquely identifies the banking institution which issues this card to you. The bank identification number is actually a key in a process of matching your transactions to the issuer of the credit or charge card. This unique numbering system also applies to the debit cards, charge cards, prepaid cards, gift cards and also the electronic benefit cards.
How BIN works?
Whenever you are considering BIN, it is in fact the numbering system developed by the ISO (International Organization for Standardization) and also American National Standards Institute in order to identify the banking sectors or institutions which issue the bank cards. In the BIN, the first digit specifies the MII which is also known as Major Industry Identifier such as banking or travel, airline and the next 5 digits specify the issuing bank or institution. This bank identification number helps a vendor for quickly finding which bank will be going to transfer the money, phone number and the address of the bank.
If the issuing bank or institution is in the same country for the transactions, it verifies the address details given by the customers. This number also allows vendors to accept the different forms of the payments and faster transaction processing. If the customer who holds the credit card makes an online purchase, the customer usually enters his or her card details on the existing payment page. After submitting the first 4 to 6 digits of the card number, the web based retailer shop will detect which bank or institution issued the particular customer card, the card level, the card brand, the issuing bank country and also a type of card.
Authorization regarding the bank identification number:
- When considering the bank identification number, it in fact identifies which issuer gets the authorization request for the safe and quick transactions in order to verify when the account or card is valid and also whether the purchase amount is existing on the card.
- It is actually the most important process which results in the charge being either denied or approved.
- If anyone uses the card during your purchase, the system scans the BIN and finds a particular issuing bank or institution which withdraws the money.
- An approval request is placed on the account of the customer. Similarly, the request is authorized within just a few seconds and then the transaction is approved.
- The credit card processing system would actually be unable to decide the origin of the funds of the customers and it can’t be done to complete the transaction without the bank identification number (BINs pro).
For all your purchases using the credit cards, BIN is very important to find the right bank or institution for the easy and quick money transactions. Each and every credit card user should have to know the first 6 digits of your bank identification number for all transactions in the different shops or online stores.