FAQ: Bank Identification Numbers

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A Bank Identification Number (BIN) is a part of the string of numbers found on a payment card. It is found on credit cards, debit cards, prepaid cards, and gift cards. Usually, it consists of the first four to six digits in the long string of numbers found on one of these cards. The purpose of a bank identification number is to reveal information about the type of card that it is associated with as well as the institution it is associated with. For this reason, BINs can also be referred to as Issuer Identification Numbers (IIN).

The Bank Identification Number provides necessary information, authorization, and security against fraud. The BIN works by identifying the issuer that receives the transaction’s authorization request and whether or not the account is valid. It also works by determining if the account has sufficient funds for the transaction, which facilitates the approval or rejection of a transaction. These all work in the background during card-based transactions, and a credit card processing system cannot function completely without the Bank Identification Number.

You can check the BIN code of a bank using an online database where you’ll find the credit card brand, type, issuing bank, and bank network, among other information.

BINs are just one piece of information that merchants can use to help fight fraud. Companies experiencing a high amount of fraudulent transactions and the chargebacks that come with them may choose to consult a company like Chargeback Gurus, who can help solve your specific fraud and chargeback challenges.

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©Chargeback Gurus 2021
Production: Emily Woodward
Narration: Sarah Rife