How a BIN Checker Can Protect Your Business from Fraud

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How much money did your business lose through credit card fraud last year? Hundreds of dollars? Thousands?

Credit card fraud is on the rise. Security experts estimate that more than a billion personal records were compromised through data breaches in 2015. Customers victimized by credit card fraud typically receive some protection in the form of insurance from card issuers. Businesses on the other hand are usually the ones who are asked to foot the bill.

Accepting credit and debit cards can expand your reach and grow your customer base. If you conduct business online, it is practically a necessity. But it can also increase your risk exposure.

That’s where a BIN checker comes in handy.

What Is a BIN Checker?

A BIN checker allows you to look up the first six digits (known as the BIN number) associated with a credit card.

The BIN number provides you with information which you can use to verify that the transaction is legitimate. Looking up the BIN, you can find out which bank issued the card and which country it was issued in. Some databases also provide additional information, such as whether you are looking at a credit card, debit card, or prepaid card. You may be able to see the brand as well.

How Does a BIN Checker Help You Prevent Fraud?

There are a number of ways in which a BIN checker can protect your business from fraud:

  • Check to make sure that the billing information the customer provides matches the BIN information for a given card. If a customer has a card issued in one country but lists an address in a different country, that may be an indication that something is awry. You can manually process these transactions or block them as needed.
  • Some businesses choose not to accept prepaid cards at all since they may present a higher risk for fraudulent transactions. A BIN checker lets you screen cards so that you can authorize only those payment methods you wish to accept.
  • If you happen to know of a data breach affecting a large subset of cardholders, you can use a BIN checker to spot incoming orders which may be fraudulent.

How to Choose the Best BIN Checker

There are a number of BIN databases out there, but not all of them are equal to the task of protecting your business from fraud.

When choosing a database, make sure you pick one which offers you a high degree of accuracy. Some databases are also quite small and may not be up-to-date. Make sure the database you choose is large and contains only the most current data. If you need additional information beyond the issuing bank and country, look for a BIN database which will offer you information about card types and brands. If all you require is something simple and basic, go with a user-friendly database which is easy to navigate and can quickly provide you with the info you need.

Don’t let your business become the victim of credit card fraud this year. With an accurate BIN checker on your side, you can potentially avert hundreds or thousands of dollars in losses!

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