BinBase website announces release of latest BIN database on the Internet (version 4.0).
A BIN (Bank Identification Numbers) database is a very useful solution for business owners and individuals processing payments on the Internet. It can help prevent credit card fraud and unauthorized payments.
For example, a developer may wish to develop a hosted fraud prevention service and offer the solution to Ecommerce business owners. The service will depend on the BIN database for records of credit and/or debit card owners. Ecommerce sites may then use the solution to verify online transactions.
The key benefit of using a BIN database is that there is no waiting time needed for approval. Based on the data in the BIN database, services are able to approve transactions almost instantly. Without such a database, it is almost impossible to verify credit card transactions over the Internet instantly.
The concept of using a BIN database is not new. Many banks are using systems that are dependent on similar databases. For instance, when consumers make a purchase at a store and pay by credit card, the payment system checks with the database for the information of the consumer. Through this process, stores are able to process and approve credit card transactions immediately.
Without a BIN system in place, merchants are at risk of losing money due to fraud transactions. Criminals may use stolen or lost credit cards to perform unauthorized transactions. Without a reliable way of identifying these cards, merchants have no way to protect themselves.
With a BIN lookup solution, this risk is removed. If a credit card has been reported to be lost or stolen, then the transaction will not be approved.
There are two types of cards that can be checked against the BIN database – credit cards and debit cards. Both types of cards may be abused by criminals.
However, debit cards (also known as prepaid cards) tend to be at higher risk. Thieves have become very cunning when it comes to abusing debit cards. For instance, since debit cards can be used with the use of a PIN (Personal Identification Number), these criminals may outright steal these numbers and start charging the cards. When the merchant realizes that the card has been stolen, it is already too late to do anything. The bank does not absorb the loss. The merchant will be forced to accept the loss. This eventually leads to a higher cost of conducting business and eventually, such costs may even be passed on to the consumers.
As a result, many merchants choose to reject prepaid card transactions as they do not wish to undertake the risks. With a BIN solution, merchants feel safer in processing both credit and prepaid card transactions.
Many major card issuers use a BIN system to verify their cards, and merchants are learning how to use a similar system to fight credit card fraud.
BinBase has been a reputable BIN database provider on the Internet for many years. The Company is proud to release the latest version of their BIN database (version 4.0) to merchants. The database has exceeded over 80k records for the first time, and all data has been updated.
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