BIN Databases: Helping Businesses to Stop Fraud

In this day and age, fraud has become a pretty big problem. Not only can it cause a lot of heartache for consumers, but it can also have serious negative effects on businesses too. Businesses aren’t often thought about when it comes to fraud. As far as consumers are concerned, businesses can look after themselves. After all they get plenty of money throughout the year so what damage can a fraudulent transaction cause for most companies?

The sad truth is that fraud can potentially cause a business to have to shut down. This might not happen frequently, but it can and does happen sometimes. This is due to charge back fees and the need to increase prices to make up for money lost due to fraud.

The good news is that now businesses are fighting back. With the help of BIN database, it’s possible to pick up a fraudulent transaction before it goes through.

BIN Databases: What You Should Know

BIN databases are comprised of BIN numbers. These are the numbers on the front of your debit or credit card. Take a look at the long number on the card and pay attention to the first six digits. These are the ones that are used in the BIN database.

The first 2-4 numbers tell you what type of card you are dealing with. These are referred to as BIN ranges. MasterCard, Visa and American Express all start with different numbers. If you take a look online you’ll be able to find a free list of all of the issuer identification numbers currently known.

Other things that the numbers tell you include what country the card is registered to and who the card is issued to. One of the main tell-tale signs that the transaction may not be completely genuine includes the fact that the country where it is being used might be completely different to the country it is registered to. This is mainly something that will occur online. Fraudsters in another country can steal credit and debit card numbers online. They can then use those details to shop online safer than they could if they were to use them in their own country.

When you have the BIN database installed on your computer, it will flag any conflicting records that it finds. This includes both online and offline transactions. It’s much easier for offline businesses to detect fraud early on. This is because they can actually see whether a person is from a different country or not. They can also look to see how the customer is acting. Many fraudsters are not overly confident when making a fraudulent transaction. So if they are appearing a little unsavoury the member of staff can run a check to see if there is anything to worry about. Online businesses can’t rely on this. Instead they mainly have to trust the BIN database to catch a problem for them.

Overall every business whether online or offline, should have a BIN database. It could really help you to cut down fraudulent transactions and gain you a better reputation.