subject: How Bin Look Up Can Help To Ward Off Card Scam [print this page] For all those people who are not aware of what BIN Look up actually means, here is brief introduction. The term BIN is the short form for Bank Identification Numbers. The unique BIN numbers are assembled and placed within a database, which is generally called the BIN Look up database.
How BIN Look up works
The BIN Look up database is applied both by online and offline merchants to authenticate all types of card transactions, such as debit cards, credit cards, gift cards as well as other kinds of cards that are issued by various stores. The BIN Look up database includes crucial card related data, such as the name of the card issuer, the type of card used during a particular transaction, the number of the card and so on. As soon as a card transaction happens, the merchant right away perform a safety check by means of the BIN Look up database. If the card is legitimate, then the transaction will get approved. In case the card does not pass authentication, the transaction will instantly get rejected, thus preventing the merchant from becoming a victim of a scam. That's why all merchants must use BIN Look up database to safeguard their business from card frauds and scams and to avoid incurring loses.
Why companies need BIN Look up database
Let's say a "client" attempts to purchase products worth thousands of dollars by means of a stolen credit card. Devoid of the presence of BIN Look up database, the retailer authorized the transaction, thus allowing the sale to get completed. Afterward the real card owner finds out that his credit card has been stolen. Therefore, he goes ahead and files complain with the police and without delay he makes a claim for a chargeback from the bank that issued the card.
In this situation, the bank that issued the credit card will authorize the chargeback on the basis of unapproved transaction. The cash would be then handed over to the real card owner. Make a note of the fact that the retailer has by now handed over the products to the impostor since the sale has already been completed. As a result the retailer would incur a huge loss worth thousands of dollars instantly, while the chances of retrieving the products are extremely doubtful. Additionally, the retailer will also be required to pay the fees for chargeback.
To avoid the occurrence of such incidents, all company proprietors need to have access to a BIN Look up database. BIN Look up database is an extremely beneficial business tool, which helps company owners to authenticate card transactions prior to any real damage is done. The moment a BIN Look up database detects a forged plastic card it instantly rejects it, thus saving a business from paying chargebacks. It also prevents a retailer from losing precious goods.
It is always sensible for business owners to invest in an accurate and up-to-date BIN Look up database. Prior to signing a contract with a BIN Look up service provider, ensure that the database provides extremely accurate data. This implies that it is important for the BIN Look up service provider to daily update the database records.
You also need to make certain that the BIN Look up database that you use, serves as an interface to your existing systems. This will help you to perform an instant card validation. Once you have effectively integrated BIN Look up database in your system, you will immediately start to benefit from it.
