Bank Identification Number (BIN) in Banking
A Bank Identification Number (BIN) refers to the initial four to six digits of a card. It identifies the issuing financial institution. The primary purpose of a BIN is to identify and categorize financial institutions and payment card types. Moreover, it aids in authorizing transactions.
Meaning of BIN in Banking
- The BIN provides vital information for the transaction process.
- The first few digits directly indicate the issuing bank or institution.
- BINs are traditionally six digits long but variations exist across card types and issuers.
The Importance of BIN in Card Programs
- When building a card program, decisions around BIN sponsorship are crucial.
- Understanding how BINs work can impact program design and launch.
BIN as a Tracking System
- A BIN enables tracking the origin of customer’s funds.
- It is used in the authorization step to check if the account is valid.
ANSI and ISO BIN System
- The American National Standards Institute and International Organization for Standardization created the BIN system for cards.
- The first digit is the major industry identifier. Cards on the Visa network often start with 4, while Mastercards usually start with 2 or 5.