Fraud Prevention:Use BIN!

BIN is short for Bank Identification Number. It’s the first 6 digits of the credit card. BIN (first 6 digits) maps to a bank.

A BIN database provides the merchant with information about the issuing bank such as the country it is located in, the customer’s billing address and other helpful information. The merchant can use this information as a factor in deciding whether or not to approve a transaction. If a card’s BIN is not found in the database, the merchant can decline the transaction to avoid fraudulent activity.

Many online merchants also use BIN databases to determine what type of card is being used to pay for a transaction, such as a credit, debt, or prepaid card. The reason for this is that prepaid cards have a higher rate of fraud. Many merchants use a prepaid flag that will alert them when the card is prepaid so they can either inspect it more closely or simply reject it to be safe. Putting such practices into place can significantly reduce a merchant’s risk of loss from fraud.

Following information can be cross-checked and can add scoring :

  1. Customer’s country and Bank’s country will most probably match. A mismatch may be flagged
  2. Prepaid cards can be flagged.

One of the most notable database is available at:

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