If your business is plagued by credit card, fraud and charge backs you should be investigating incorporating information from a site into your payment process. Retailers who use credit card BIN database software can flag and investigate suspicious credit card use by matching the information provided by the customer with the card issuers’ data. Inconsistency in the data could signal fraud.
BIN stands for Bank Identification Number and it is the first six numbers of a credit, debit or prepaid card. These numbers help identifying the issuing bank and other key information. Any business or organization that accepts credit, debit or prepaid cards for products or services can benefit from using a card BIN database program to verify customer information and avoid card transaction fraud.
Primarily, a BIN database for credit card aids in fraud prevention. By matching, the information provided by the purchaser with the available information from a BIN database lookup, mismatched information alerts the merchant that card fraud could be occurring. In these cases the merchant has the option of further scrutinizing the transaction or cancelling the order.
Fraudulent transactions can also lead to excessive chargebacks which can damage business in any number of ways. If a credit, debit or prepaid card is used without the consent or proper authorization of the card holder a chargeback can result. A merchant is often responsible for fraudulent charges. In addition to this potential loss, an excessive chargeback ratio (the chargeback ratio is the total number of card processing transaction divided by the number chargebacks) can cause a merchant to have their account suspended or closed. Business stoppage due to not being able to take credit, debit or prepaid cards is a situation no business can afford. To avoid this risk more and more businesses regularly use a card BIN database table to verify transaction data to help identify potentially fraudulent transactions.
New online businesses are especially susceptible to targeted credit card fraud. Criminal organizations focus on flooding new retailers with orders for products and services in hopes of receiving the ordered goods before the fraud is detected. A credit card BIN database service helps mitigate this situation by identifying the issuing banks country of origin. This can be checked against the purchasers provided information to ensure a match. In addition, some countries such as Nigeria, Indonesia, Russia and China are known to be areas where credit fraud emanates. A merchant with BIN database software can set up a system that alerts them to credit, debit or prepaid cards from issuers in these countries. The merchant can then review and recheck the validity of the transaction and make an informed decision on whether to honor the order or reject it.
An alert system can also be set up to identify when a prepaid card is being used in the transaction. Data shows that prepaid cards are the most likely to be used in fraud and should be scrutinized more closely before approving and fulfilling an order.
A credit card BIN database can save a business significant revenue loss due to credit card transaction fraud by helping verify customer information with data in the issuing banks records.