What Is Bin Bank?

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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.

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