These days it’s more important than ever to have methods in place for identifying fraud for online transactions. As a business owner, the responsibility falls on you to vet every purchase and ensure it’s legitimate. 

Otherwise, the loss of a sale and product will be the least of your worries. Businesses that experience frequent fraud issues tend to accumulate a high chargeback rate that can lead to reputational and operational consequences. 

One way you can uncover fraudulent purchases is through the use of bank identification numbers, or BINs. That’s why we’re going to show you how to find bank identification number in this guide below.

We’ll walk you through the manual lookup process along with online lookup tools and automated solutions that can constantly safeguard your business from fraud. The best method is to use our free BIN lookup tool here at Disputifier!

The most comprehensive protection you have at your disposal is our chargeback app, which not only stops up to 99% of fraud but also reduces other types of chargebacks to help protect your profits and reputation on autopilot. Get started today with Disputifier!

The Role of Bank Identification Numbers (BINs) in Fraud Prevention

Before we get into how to find bank identification number it’s worth a quick overview of the role these play in identifying and preventing fraudulent purchases for your business. So, what is a BIN?

What is a BIN?

This is the first six to eight digits of a payment card number. While most commonly debit or credit cards, prepaid cards have BINs too. This information isn’t quite as random as you might think, either.

The BIN is used to identify the type of card and the financial institution that issued the card to the cardholder. This helps route transactions, ensuring funds are correctly transferred between the merchant, acquiring bank, and issuing bank.

Common Use Cases in Fraud Prevention

BINs are commonly used in fraud prevention because they facilitate transaction tracing. Merchants and payment processors alike use them on a daily basis. 

For instance, if a transaction originates from a country known for high levels of fraudulent activity, the associated BIN can trigger additional verification processes, such as requiring the customer to provide more information or flagging the transaction for manual review.

Merchants and fraud prevention systems can cross-reference BINs with databases of known fraudulent activity, too. If a BIN has been previously associated with fraudulent transactions, the system can automatically flag any new transactions from that BIN for further scrutiny. 

Another use case is for supporting stronger customer verification. If the BIN indicates a card is issued by a bank in one country, but the transaction is being made from a different country, the system will be prompted to request additional verification from the customer. 

We also see businesses use BINs to monitor unusual transaction patterns. Say multiple transactions are made in quick succession using cards from the same BIN but different card numbers - this could be a sign of card testing, a common fraud technique where criminals test stolen card information by making small purchases.

There are many ways you can use BINs to your advantage if you’re looking to tighten up your fraud prevention strategies. But in order to do so you need to know how to find bank identification number - we’ll share a few different techniques below!

How to Find Bank Identification Number

As we discuss in our more comprehensive guide on how to fight fraud chargebacks, using BINs is one of your best defenses. Learn how to find bank identification number manually, using online lookup tools, and automated solutions to stop fraud in its tracks.

Manual Methods for Finding BINs

One of the simplest ways to find a BIN is to look directly at the payment card. The BIN is the first six to eight digits of the card number. For example, if a card number starts with “453964,” then “453964” is the BIN. This method is straightforward but requires physical access to the card.

While it might not work for online transactions, it can be a reliable approach for high-ticket purchases in physical settings - such as jewelry boutiques, car dealerships, expensive restaurants, and more.

You could simply compare the BIN in question to a publicly available BIN list, which will give you insights on bank, card type, and country of origin. That being said, this is a time-consuming process, and one that won’t work for eCommerce businesses. Let’s show you a better way.

Using Online BIN Lookup Tools

There are plenty of websites and online tools that offer free BIN lookup services. You can enter the first six digits of a card number, and the tool will return details such as the issuing bank, card type, and country of origin.

You’ll just need to do your research in choosing a BIN lookup tool as some are notorious for returning inaccurate information. Others may not provide the depth you’re looking for. Look for a service that provides information on the bank’s contact details, card usage patterns, and known fraud associations.

Automated BIN Lookup Solutions

Businesses processing large volumes of transactions can benefit from integrating BIN lookup solutions directly into their payment processing systems. This is our suggestion once you start processing hundreds or thousands of transactions a month.

Automated BIN lookup tools can analyze card details in real time, cross-referencing the BIN against a comprehensive database to identify potential fraud risks immediately. It’s the most efficient and cost-effective method.

Better yet, these tools can integrate with more sophisticated fraud detection systems to provide real-time analysis and decision-making. The system checks the BIN along with other transaction data the moment a transaction is initiated to assess the risk. 

If the BIN is associated with high-risk factors, the transaction can be flagged or declined automatically, preventing potential fraud before it occurs.

Now What?

So you know how to find bank identification number - but what do you actually do with this information? Here are some tips on using the BIN to assess fraud risk, including the next steps if you suspect the order is fraudulent:

1. Assess Transaction Risk: If the BIN indicates a high-risk region or a card type known for fraud, you can take additional precautions, such as requiring further verification or declining the transaction altogether.
2. Tailor Fraud Prevention Strategies: You can set up rules that automatically flag transactions from certain BINs for further review. This allows you to proactively manage risk and focus your resources on the most suspicious transactions.
3. Enhance Customer Verification: If the BIN lookup reveals inconsistencies - such as a card issued in a different country than the shipping address - you may want to contact the customer for verification before processing the order. This can prevent chargebacks and protect your revenue.

These tactics will help you greatly reduce the likelihood that fraudulent orders slip through the cracks - but, there is more you can do to round out your defense. 

More Ways to Defend Against Fraud

A comprehensive fraud defense strategy involves looking at as many data points as possible while implementing all the different preventative measures you have at your disposal. Given the toll fraud can have on your business, it’s not something you should take lightly. Here are some more tips:

• Customer Authentication: Strong customer authentication is a regulatory requirement in some regions, like the EU, under the Payment Services Directive (PSD2). It involves using multiple forms of verification - such as something the customer knows (password), something they have (phone), and something they are (biometrics) - to ensure the person making the transaction is truly the cardholder.
• Address Verification System (AVS): This compares the billing address provided by the customer with the one on file with the card issuer to detect suspicious transactions where the billing and shipping addresses do not match, which is a common indicator of fraud.
• Machine Learning and AI: These systems can sort through hundreds of data points and pinpoint fraud with incredible precision. They are continuously getting better so they’re finding more fraud while reducing false positives.
• Educate Your Team: If you’re not the one reviewing orders, make sure your employees know what to look for. Train them on the importance of data security and show them how to find bank identification number along with the other measures you put in place.

There are so many ways you can reduce fraud. All that being said, the best way to prevent fraud also happens to be the easiest and most cost-effective - let Disputifier do it for you!

Don’t Let Fraud Affect Your Business, Let Disputifier Protect Your Transactions Today!

Disputifier is the best chargeback prevention company, partially because we have advanced AI fraud scanning tools that work around the clock to stop fraudulent orders before they are processed. This feature assesses hundreds of data points to stop 99% of fraud without causing false positives that cost you profits.

The best part is it reduces human involvement so you can maintain your focus on more pressing matters. We’ll help you come up with a custom strategy to verify flagged orders through automated customer communication. Your first 100 orders are free!

If you deal with other types of chargebacks, such as chargeback for services not rendered, chargebacks for item not as described, or anything in between, we have integrated chargeback alert systems as well. We use Verifi and Ethoca alerts to help you refund orders before they count against your chargeback rate.

When disputes do slip through the cracks, our system can fight them on your behalf to help you win a chargeback as a merchant more frequently. In fact, our system can boost your chargeback win rate by as much as 67%, and you only pay when you win!

It’s time to stop letting fraud cause you stress and create turmoil in your business. Enjoy peace of mind by letting Disputifier safeguard your company's revenue and reputation!

Parting Thoughts on How to Find Bank Identification Number

Knowing not just how to find bank identification number, but how to use it as part of your fraud prevention and management strategy is essential for any eCommerce business transacting in high volumes. 

Remember, though, BIN lookups are just one part of a comprehensive approach to fraud prevention. Combine them with other security measures to strengthen your defenses.

You can find additional resources in our blog like chargeback representment, chargeback timeframe, chargeback letter to customer, chargeback vs dispute, merchant chargeback insurance, VDMP, Visa RDR, pre-arbitration, and more.

Otherwise, it’s time to protect your bottom line with the best in fraud defense - get started with Disputifier’s innovative solutions today and see why leading brands trust us!