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During the verification process of credit cards, financial institutions, including Kotak Mahindra Bank, refer to a unique numerical identifier called an Issuer Identification Number (IIN) or Bank Identification Number (BIN). It is the first six numbers on a credit or debit card and is crucial for confirming its validity and authenticity. Within the branch of credit card transactions, Bank Identification Numbers, or BIN values of credit cards, are essential. They aid in combating fraud and provide necessary information about the issuer. Businesses may improve client experiences by making payments efficient with BIN data.
How do BIN Numbers Work?
The American National Standards Institute (ANSI) and the International Organization for Standardization (ISO) developed the BIN system, which is a global identification system.
Usually, when a card is swiped or manually input, the issuer gets the authorisation input, which is later identified by the credit card BIN. The issuing bank will receive a request for authorisation from the customer when there is any payment to check and verify the validity and capacity of the card considering the amount used for a specific purchase. Should everything be in order, the purchase will be accepted. If not, the issuing organisation will reject it.
How to Find Bank Identification Numbers?
The first four to six digits of a cardholder's number will be their bank identification number. This number lists the card issuer and the main industry with which it is intended to be used.
The MII (Major Industry Identifier) is the first number on a banking card, which sets it apart from other cards. Most of the cards you deal with daily are those that begin with a 3, 4, 5, or 6. These numbers are designated specifically for use in the banking and other financial sectors.
Of course, there are different types of credit card reference numbers. Cards starting with a 1 or a 2 are used exclusively in the airline sector. Petroleum industry cards begin with the number 7. The telecoms and healthcare sectors utilise cards that begin with an 8. Ultimately, cards that start with a 9 or 0 are reserved for assignment by national standards bodies or the ISO (International Organization for Standardization). Finding the issuer of a card should be simple after the principal industry has been established, particularly if the issuer is a significant one.
What Are Bank Identification Numbers Used for?
The crucial applications of BIN numbers are as follows:
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Example of a Bank Identification Number (BIN)
Let's consider a customer who purchases online with their credit card. When they enter their card details on the checkout page, the website first verifies the bank or institution that issued the card. That is when BIN plays a role.
For instance, if the credit card number starts with 123456, the first six credit card number digits (123456) are the BIN. The website's payment system uses this BIN to collect the issuer's information, such as the bank's name, country of origin, and card type.
Based on this information, they route the payment process to the concerned bank or institution. This is important as it ensures your transaction is securely processed, minimising the risk of fraud.
What Is a Bank Identification Code?
A Bank Identification Code (BIC), or a Bank Identifier Code, is an eight or eleven-digit unique code used to identify banks or card issuers in international transactions. While a BIC may or may not be connected, it's essential for overseas purchases. If connected, it's referred to as a SWIFT code, which is part of the SWIFT network, facilitating secure international financial transactions.
What Is BIN Scamming?
Bank Identification Number scamming, or BIN scamming, is a fraudulent activity in which con artists utilise credit card information that has been stolen to make unauthorised purchases. Scammers use a variety of techniques, including database hacking and the use of skimming devices, to access BIN information.
If they know the BIN number, scammers can create legitimate credit card numbers and use them for purchases. Scammers frequently use payment systems and commit such crimes in the e-financial sector.
The following advice will assist you in avoiding being a victim of BIN scams:
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Importance of BIN Numbers
BINs allow retailers to accept multiple payments simultaneously and facilitate quicker financial transactions. Financial institutions like Kotak Mahindra Bank can identify credit card numbers in India that were hacked or misused. They can provide information about the type of cards used, the type of bank, and other pertinent details about the issuer and user.
In addition to representing the card-issuing bank and its location, BINs also provide the transaction participant with access to the information. It helps online traders validate information and spot instances of dishonesty, misplaced logins, and unauthorised access.
In short, BINs are essential because they protect consumers and businesses in a world where industry is slowly moving online. They are necessary for the smooth running of online shopping.
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