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Understanding the Bank Identification Number (BIN)
A BIN is what?
The Bank Identification Number (BIN), sometimes referred to as the Issuer Identification Number (IIN), is a numerical number used to identify the institution that issued a card for payment, such as a credit or debit card. Banks and other companies like American Express also use this code. Cross-referencing data like the cardholder's address and the issuing institution's address, the BIN is quite important in finding possible fraud or security problems.
How BIN Operates
Procedure for Approvals
The BIN is vital for the transaction approval procedure. It shows the requesting institution which one should get the authorisation demand to verify the card or account and confirm the availability of enough money for the transaction. This validation controls the approval or rejection of the trade.
For example, when a customer swipes their card at a gas station, the system reads the BIN to find the issuing institution accountable for disbursing the funds. An authorisation request is next submitted to the customer's account, and the transaction is either accepted or declined in seconds. The payment processing mechanism would be unable to trace the source of the money without the BIN; hence, the transaction would be impossible to finish.
A BIN is what?
The Bank Identification Number (BIN), sometimes referred to as the Issuer Identification Number (IIN), is a numerical number used to identify the institution that issued a card for payment, such as a credit or debit card. Banks and other companies like American Express also use this code. Cross-referencing data like the cardholder's address and the issuing institution's address, the BIN is quite important in finding possible fraud or security problems.
How BIN Operates
Procedure for Approvals
The BIN is vital for the transaction approval procedure. It shows the requesting institution which one should get the authorisation demand to verify the card or account and confirm the availability of enough money for the transaction. This validation controls the approval or rejection of the trade.
For example, when a customer swipes their card at a gas station, the system reads the BIN to find the issuing institution accountable for disbursing the funds. An authorisation request is next submitted to the customer's account, and the transaction is either accepted or declined in seconds. The payment processing mechanism would be unable to trace the source of the money without the BIN; hence, the transaction would be impossible to finish.
