Credit Card Numbers Bank Identification Guide for Merchants

As a merchant, accurately identifying credit card numbers is crucial for secure transactions and preventing chargebacks. Bank identification is a critical aspect of this process.

Mastercard credit cards typically start with a 51-55 prefix, while Visa cards have a 4 prefix. American Express cards, on the other hand, start with a 34 or 37 prefix.

For merchants, recognizing these prefixes can help you quickly determine the type of card being used. This can also aid in processing transactions and preventing errors.

The IIN (Issuer Identification Number) is a six-digit code that further identifies the bank issuing the card. Understanding the IIN can help you verify the card's authenticity and ensure a smooth transaction.

A credit card number is a 16-digit code that serves as a unique identifier for each card. It's made up of a combination of numbers that help process transactions and verify card information.

The first digit, known as the Major Industry Identifier (MII), identifies the card's industry, such as banks or airlines. The rest of the number is divided into four parts: the issuer identification number, the account number, the check digit, and the service code.

The issuer identification number is the first six digits, which identify the card issuer. The account number is the next nine digits, which uniquely identify the cardholder's account. The check digit is the last digit, which is used to verify the card number. The service code is the last four digits, which provide additional information about the card.

Understanding these components of a credit card number is crucial for organizations to optimize their payment stack and strategy.

A credit card number is made up of several parts, each serving a specific purpose. The first six to eight digits, known as the Bank Identification Number (BIN) or Issuer Identification Number (IIN), route payment instructions to the correct network and its member bank or credit union.

The Major Industry Identifier (MII) is the first digit of the BIN and PAN, indicating which card brand to send the payment for further processing. There are 10 MII, but only four you need to know: 4 for Visa, 5 for Mastercard, 6 for Discover, and 3 for American Express.

The card networks use the remaining BIN digits to determine which financial institutions to route the transaction for further processing. The BIN system is used for global identification, and it identifies the issuer that authorization requests will be sent when a card is swiped or entered manually.

A BIN number is on every type of payment card, and the first number in the BIN sequence signifies the primary industry identifier and the following numbers specify the issuing institution. Customers who buy something online will enter their card information on the checkout page, and the company can identify which institution issued the customer's card as well as the card brand, the card level, the card type, and which country the issuing bank is located in.

Here's a breakdown of what happens when a transaction is initiated:

Without a BIN or IIN, it would take a lot of manual labor and a significant amount of time to process a transaction. By quickly identifying which bank is involved, you can seamlessly accept payments from your customers.

A credit card number is made up of several components, each serving a specific purpose. The Primary Account Number (PAN) is the 15-to-16-digit string that helps processors, networks, and issuing banks find your account among the hundreds of millions of cardholders.

The PAN is divided into three main parts, with one part having a sub-part. The Bank Identification Number (BIN) or Issuer Identification Number (IIN) is the first six to eight digits, which routes payment instructions to the correct network and its member bank or credit union.

The Major Industry Identifier (MII) is the first digit of the BIN and PAN, indicating to processors which card brand to send the payment for further processing. There are 10 possible MII values, but only four are commonly used: 4 for Visa, 5 for Mastercard, 6 for Discover, and 3 for American Express.

The remaining digits on the card are the cardholder's account number and the check digit, also known as the Luhn check digit or checksum. The account number helps with identifying the unique account associated with the card, verifying the account is still in good standing, determining if the account has the funds to cover the transaction amount, withdrawing funds or charging the appropriate account, and facilitating refunds if necessary.

The Luhn check digit is used to detect any errors that might have been made when communicating the account number in a card-not-present transaction. It's calculated using a complex algorithm that multiplies and adds the digits on the payment card.

Here's a breakdown of the credit card number components:

Using BIN data can significantly enhance your risk management strategy, making it more effective in detecting and preventing illicit activities. Compliance with regulatory requirements is crucial, and BIN data helps businesses detect and prevent money laundering, fraud, and other illicit activities.

The most effective fraud and chargeback management strategies are data-driven, and BINs provide valuable insights to make informed decisions. BIN data can help stop fraudsters from making unauthorized purchases by identifying suspicious transactions.

Auto-declining high-risk BINs can be a tactic used to prevent chargebacks, but it requires constantly updating risk management rules as BINs change. You'll need a system in place to map old BINs for high-risk issuers to new BINs to avoid unnecessary chargebacks.

Security codes are an essential part of protecting your financial information, particularly for online transactions. Requiring a security code, like a CVC or CVV, helps verify that your card is in your possession.

These codes are typically located on the back of a payment card, and their format can vary depending on the card brand. Some cards have a 3-digit code, while others have a 4-digit code.

The security code adds an extra layer of protection for card-not-present transactions, making it harder for attackers to use your card without your physical card. This is because the code is not stored on the magnetic stripe or EMV chip of the card.

Service codes, on the other hand, are a set of three digits embedded into the magnetic strip that provides information about the card and how it can be used. They are different from security codes, which are used to verify the authenticity of a transaction.

While some card brands use different terminology, like CVC or CVV, they refer to the same security code. This code is considered sensitive authentication data and cannot be stored by merchants.

Compliance with regulatory requirements is an essential aspect of the financial industry, and BIN data plays a crucial role in this process.

By combining BIN data with stringent risk management practices, businesses can detect and prevent money laundering, fraud, and other illicit activities, ensuring a secure and trustworthy environment for financial transactions.

Auto-declining high-risk BINs is a tactic some merchants use to prevent chargebacks, but this requires constantly updating risk management rules as BINs change.

You'll need a system in place to map old BINs for high-risk issuers to new BINs to avoid declining legitimate transactions.

The most effective fraud and chargeback management strategies are data-driven, and BINs provide valuable insights to make these strategies more effective.

BIN data can help stop fraudsters from making unauthorized purchases by identifying suspicious patterns, such as a purchase made with a corporate card being shipped to an apartment.

Chargebacks might be more common with credit cards than debit cards, and some issuing institutions dispute transactions at a higher-than-average rate, highlighting the importance of analyzing BIN data for chargeback prevention.

The first digit of a credit card number, known as the Major Industry Identifier (MII), reveals the card issuer category. This is an inherent aspect of the card brand.

The MII helps identify the card issuer's industry and is used by processors to determine which card brand to send the payment for further processing. There are 10 MII codes in total, but only four are commonly used.

Here's a breakdown of the MII codes by category:

Account data is the information presented on a physical card that helps route and verify payment information. It's a crucial part of the transaction lifecycle.

A Primary Account Number (PAN) is like a mailing address, with each digit helping processors, networks, and issuing banks find the account among millions of cardholders. The PAN is a 15-to-16-digit string, which is divided into three main parts, including a sub-part.

An Account Identifier is a unique account number used by an issuing bank to identify a cardholder's account, similar to a home's unit number and street. It tells the bank which ledger account to debit or credit.

The Bank Identification Number (BIN) is not the same as an account number, but rather refers to the first 4-6 digits on a payment card, identifying the institution that issued the card and its type.

The remaining digits on the card are the cardholder's account number and the check digit, each playing a unique role in the transaction lifecycle. The account number helps identify the unique account associated with the card, verify its status, determine if it has sufficient funds, and facilitate refunds if necessary.

The last digit on a payment card is the Luhn check digit or checksum, used to detect any errors in the account number during card-not-present transactions. It does this by performing a complex calculation on the digits, and if the solution is divisible by 10, the account number is valid.

Here's a breakdown of the types of account data:

Merchant Data Access is crucial for optimizing payment processing. Merchants can access BIN data through third-party providers, typically their Payment Service Provider (PSP), but this data must come directly from the card schemes.

Merchants cannot directly access BIN data from the card schemes. They have to rely on third parties, which can be a challenge. To ensure accuracy, it's essential to evaluate any BIN data provider and verify that they obtain their data directly from the schemes.

Primer abstracts the complexity of BIN data for its merchants, providing the most up-to-date data directly from the card schemes. They standardize the data points and translate them into direct attributes like "credit" or "debit", making it easier for merchants to build payment flows.

To give you a better idea, here are the common challenges merchants face when accessing BIN data:

Primer helps merchants overcome these challenges by providing centralized logic for handling BIN data, making it easier to manage and use multiple PSPs.

The Major Industry Identifier (MII) is the first digit of the Bank Identification Number (BIN) and Primary Account Number (PAN), indicating which card brand to send the payment for further processing. This helps processors determine how to route the transaction.

There are 10 MII codes, but you likely only need to know four of them. Here are the most common ones:

The remaining MII codes indicate other industries, such as travel and entertainment, petroleum, and healthcare. The MII code is a crucial piece of information for processors, as it helps them determine how to process the transaction.

The Bank Identification Number (BIN) is the first six to eight digits in the PAN, routing payment instructions to the correct network and its member bank or credit union. It's essential for identifying the institution that issued the card and its type.

The first six to eight digits of the PAN are also known as the Issuer Identification Number (IIN). This helps processors identify the card issuer and its type, making it easier to process transactions.

The industry of merchant shipping is heavily regulated, with the International Maritime Organization (IMO) setting standards for safety, security, and environmental protection.

One of the key regulations is the requirement for ships to carry a Certificate of Compliance with the International Safety Management (ISM) Code, which ensures that ships are operated in a safe and responsible manner.

The IMO also sets standards for ship safety equipment, including life-saving appliances and fire protection systems.

Ships must be registered with the government of the country in which they are flagged, and must meet specific requirements for safety, security, and environmental protection.

Merchant ships are required to carry a crew of at least one officer and one able-bodied seaman, and must have a minimum number of lifeboats and emergency equipment on board.

The IMO has also implemented regulations to reduce greenhouse gas emissions from ships, including a requirement for ships to use fuel-efficient technologies and to reduce their speed when possible.

The BIN concept was developed by the American Bankers Association (ABA) and the International Organization for Standardization (ISO) in the 1960s. This marked the beginning of a global standard for identifying card issuers.

BINs have become a crucial part of secure and efficient payment transactions. They help facilitate the exchange of funds between merchants and card issuers.

The ABA and ISO's collaboration led to the creation of BINs, which have since become a widely accepted standard. This standardization has streamlined payment processes worldwide.