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Credit card frauds are widely happening all over the world. Law enforcement and government agencies can do very little about it. They can investigate and trace the perpetrator but they can only do so much, especially because in almost all cases, credit card fraud happens overseas. It is your responsibility to detect these fraudulent transactions as a merchant; because, they all start right under your nose. This is the reason why online storeowners are required to check bin in order to get all necessary information to confirm the user's identity. Bin stands for Bank Identification Number. This set of numbers are not randomly selected by the financial institution, in fact an international organization provides these numbers to standardized all the credit cards issued all over the world. This is the reason why all MasterCard start with 5, all visa cards start with 4 and AMEX card starts with 3. Other industries like airline industry, telecommunication industry, petroleum industry and government agencies have their own set of numbers. This enables merchants to trace the validity of the card easily. However, there are more than 200,00 bin for banks alone, which means that it would be very time consuming if you check bin manually.
Automatic Bin Check
If you are a merchant whether you have a brick and mortar store or you are solely operating online, having a bin checker is extremely important. Bin checker allows you to check bin and identify the card's authenticity. Many credit card frauds happen without the knowledge of the cardholder. According to reports, unethical retail store cashiers and clerks are responsible for stolen card information. They do not steal the card, just the information they get from the card and then make an online or phone purchase. So the unknowing card owner, have not yet reported the card as stolen. Therefore, if merchants charge the card, the transaction will easily go through. Without stolen card report, banks will approve these transactions.
Now, when the cardholder discovered the charge, he or she will report it to the bank and ask them to wipe off the charge. If merchants are proven to have overlooked to conform to the standard regulation set forth by the agencies, then they will erase these charges and write it off as liable tax deductibility. However, it does not stop there. Credit card companies will now turn to the merchants and penalized them with charge backs. If the rate of charge backs from one merchant is extremely high or is more than what banks allow, then they will now cancel the merchant's account and refuse to do business with them anymore. This could potentially hurt your business because you now have now limitations on the types of credit cards that you can accept. For example if AMEX refused to do business with you then all AMEX card holders will not be able to make purchase on your store unless they have another credit card that they could use to make a purchase. If not, then you would have to cancel the transaction altogether, which means loss of sale and customer loyalty. The best to protect your business is to refer to bin checker database always.
Article Source: http://www.articlehotline.com/articles
Now you know about the importance of BIN checker. Feel free to online BIN check.
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