subject: Bin Lookup - Smartest Way To Identify Potential Frauds In Finance. [print this page] A Bank Identification Number (BIN) provides a unique and secure identification for each card, whether debit, credit or charge card. It reveals the issuing institution, address, nature of card, and other relevant details needed to establish the authenticity of the cardholder and transaction.
Advantages of bin lookup
A bin lookup before finalising the order is ideal for all establishments irrespective of their business.
Prevention of financial frauds
Internet shopping and credit card purchases are showing an increasing trend each day. The risk of financial frauds also have been on the rise ever since. A bin lookup before finalising the purchase can make the shopping easier and more authentic for both the consumer as well as the provider. Bin lookup facilitates to establish the credentials of the card holder and therefore reduces the risk of such financial frauds.
Securing finance
Any financial fraud can affect the economy of the business in a negative way. Securing finances means securing the future of business. A bin lookup tool identifies the potential financial frauds and thus secures the business from unprecedented financial losses.
Managing assets
A good bin lookup tool helps to secure the business transactions from fraudulent claims and allows the merchant to have a better control over his assets. This surely helps in efficient management of finances and other assets and promotes the overall growth of the business.
Reducing chargeback
Bin lookup tools allow better comparison between the customer card details and the international bank database. When the merchant happens to withdraw above the accepted limits set by the card service provider the transaction may be cancelled. The merchant may be forced to credit back the excess sum to the client's account. Such situations are referred to as chargeback and are considered as fraudulent claims. Even criminal proceedings can be initiated against the business owners. The internationally accepted limit for such chargeback ratio is 2.5. Checking the bin database using a bin lookup tool helps to prevent such fraudulent claims and allows for reduction in chargeback ratio. This allows the merchant to identify potential chargeback claims and cancel such transactions before allowing the claims. Regular monitoring of chargeback percentage helps the merchant to avoid situations which can yield financially disastrous results.
Management of risk
Any business is susceptible to risk and hence the need of risk management is high especially in the present economic scenario. This is especially true for new ventures where risk of financial frauds is high. A bin lookup tool can prevent such fraudulent claims and thus reduce the risk.
Protecting the customer base
Any business relies on customer support for growth. A good bin lookup tool enables the merchant to check on the customer without embarrassing security checks. Since it is done with the help of a system, the merchant can ensure the credentials of the customer without offering any chances for verbal duel. The bin lookup tool can offer secrecy and it is perfectly legal.
by: Gen Wright
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