When Does A Card Bin Number Matter?

Every now and then a business dealing online will run into the problem of receiving fraudulent

, yet passable credit card orders into their system. These cards will process through and allow the purchase to completely run through the sale without incident. Not only will the sale process, but the business may also package and send out products or services before the charges completely clear through the processing service provider.

Once the payment has been shown to be invalid, the processor may charge fees as well as receive a refund from the business that was stricken by fraud. So not only will the business lose their money from the sale and lose the item that was sold, the card processor charges the fee for invalid card purchases. The merchant is then forced to lose on three value scales. This is a problem that can be greatly reduced with the card bin number verification system.

Processing a Card Bin Number

The card bin number is not a new concept. Credit cards have been required to follow a strict identification system that routes all electronic funds transfers to the appropriate party that owns the card. To do this the card bin number must be accessed initially before connecting to a certain account. The card bin number is the first 6 digits that appear on the credit/debit/gift/preloaded card. These digits tell the system which bank, issuer, card type and institution was involved in creating the card. Without the proper card bin number, the card cannot be processed to the appropriate account.

In association with the card bin number, the remaining numbers on the card will denote the account attached to the card. The final number is used to actually run a check that makes the card validate through the system. This number is known as a checksum. So in combination of the card bin number, the account number and checksum, the card can be processed fairly easily. Fortunately, a very large number of the people who attempt to forge card numbers that work with the system will not know what they are doing and will simply trip the system so the transaction never goes through. In the event that a valid running card is created that does not exist the seller will simply have the money reversed which was processed into their account. A fee can then be issued for attempting to run a fraudulent electronic payment using an invalid card bin number.

The card bin number can be checked through a bin checking service. These services allow you to enter any card bin number into the system and find the existing information about the card being processed. With the card bin number, you can then tell if the bank or institution that issued the card exists and is valid. If the card bin number returns an error or invalid warning, then the appropriate response would be to deny the sale to the customer. A high end card bin number checking service can greatly reduce losses to online dealing businesses.

by: Gen Wright

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