Fraud is a constant concern for business owners transacting online. The onus is on you to review orders to determine legitimacy before fulfilling the product or service. 

Unfortunately, companies processing many transactions can’t afford to manually review every single order. You need a more automated approach to screening for fraud. That’s where BIN lookups come in. 

So, what is BIN lookup, and how does it fit into your fraud prevention strategy? This is a tool that helps businesses identify the issuing bank, card type, and other essential details associated with a payment card.

It empowers you to quickly detect potential fraud, such as mismatched card types or transactions originating from high-risk regions. But, it’s just one piece of a comprehensive fraud prevention puzzle. Fully protecting your business necessitates a multi-layered approach.

That’s why businesses rely on Disputifier. Our chargeback app leverages a variety of fraud prevention tools to stop up to 99% of fraud in its tracks. We even have a free BIN lookup tool if you’re interested. 

Learn more about our chargeback management and prevention strategies and how they can help you today!

What is BIN Lookup?

So, what is BIN lookup? As we touched on above this process identifies the financial institution that issued a payment card, be it a credit or debit card. 

The BIN is the first six digits of the card number and is a key identifier in the transaction process. Businesses can use a BIN lookup to access crucial information about the card issuer, card type, and even the geographic location associated with the card. 

It’s a common fraud prevention strategy used to verify transaction legitimacy before an order is processed, particularly for eCommerce businesses where the card is not physically present at the time of purchase. 

This helps uncover red flags associated with fraud. For example, it can weed out transactions originating from high-risk regions or the use of prepaid cards which are often associated with fraud. 

What Will BIN Lookup Tell You?

Now, what is BIN lookup going to tell you? There are two components here: bank information and card information. Each of these plays a pivotal role in uncovering and preventing fraud.

Bank Information

A BIN lookup reveals the name and location of the issuing bank. You’ll also get contact information for the issuing institution in question.

This information can be used to verify that the transaction is consistent with the customer’s details and location. If the bank is located in a region that doesn’t match the customer’s address, it could indicate potential fraud.

Card Information

The lookup will also provide card details - first and foremost, whether it's a debit card, credit card, or even a pre-paid card. From there, you can gain uncover the card network (Visa, MasterCard, American Express, etc.).

What Can You Do With This Information?

So why would you bother performing a BIN lookup in the first place? What exactly does this information empower you to do? There are a few reasons you need to know how to do these lookups:

• Detect Suspicious Transactions: Identify mismatches between the customer’s information and the card issuer’s details.
• Assess Transaction Risk: Understand the level of risk associated with the card type and issuing bank, which can inform your fraud prevention strategies.
• Improve Customer Verification: Use the data to enhance customer verification processes, adding an additional layer of security to your transactions.

Whether you’re trying to bring your chargeback rate down after being enrolled in the VDMP (Visa Dispute Management Program) or you simply want to do your part to protect cardholders, using BIN lookups can be a powerful component of your fraud prevention strategy. So how do you do it?

Tips on Performing a BIN Lookup for Fraud Prevention

There are a few ways you can perform a BIN lookup - either manually on a case-by-case basis or automatically using technology. We’ll cover both strategies along with a few other tips on using this technique in your fraud prevention efforts.

Manual BIN Lookup

This involves entering the first six digits of a customer’s card into a BIN lookup tool or database. It’s simple and doesn’t require any specialized software, making it accessible for businesses of all sizes. 

However, it can be time-consuming and prone to errors, especially if you’re handling a large number of transactions. Nevertheless, here’s how you’d go about it:

1. Enter the first six digits of the card number into a reliable BIN lookup tool.
2. Review the information provided, such as the issuing bank, card type, and country.
3. Cross-reference this data with the customer’s details to check for inconsistencies.

If you’re looking to streamline the process, though, automated BIN lookup tools are the way to go.

Automated BIN Lookup

This integrates BIN verification directly into your payment processing system for real-time analysis as transactions occur. It’s more suitable for businesses handling a large volume of transactions, as it eliminates the manual process and reduces the risk of errors.

1. BIN data is automatically extracted and analyzed during the payment process.
2. The system flags any discrepancies or suspicious activity for further review.
3. Automated responses can be triggered based on predefined rules, such as declining a transaction if the BIN data doesn’t match the customer’s billing information.

While this does take a bit more work upfront to set up, it’s worth it in the end for the overall time-saving. But what do you do after successfully running a BIN lookup?

Now What?

If the lookup reveals inconsistencies, such as a mismatch between the card issuer’s location and the customer’s billing address, you should consider flagging the transaction for further review, contacting the customer for verification, or declining the transaction altogether.

You could also compare data found in the process to the customer’s IP address, email address, or phone number. The more data points you have, the better. 

On the other hand, if the transaction passes the BIN check but still raises other concerns, you might consider using additional verification steps. This could be requiring a second form of authentication or reviewing the customer’s order history.

More Ways to Reduce Fraud

There’s no denying the power of BIN lookups, but there are many other ways you can scan for fraud and prevent it from taking a toll on your business.

For example, you could implement multi-factor authentication (MFA) and other verification methods to ensure the legitimacy of transactions. Better yet, leverage an AI-powered fraud prevention that uses hundreds of data points - such as Disputifier!

Fight Fraud on Autopilot With Disputifier!

Our solution scans every transaction for fraud to help you feel confident capturing funds from customers. It stops up to 99% of fraud while preventing false positives, so you don’t have to worry about it cutting into your profits either.

Plus, if you’re wondering how to reduce chargebacks, Disputifier offers intuitive chargeback alerts through Verifi and Ethoca alerts. These allow you to refund up to 95% of disputes before they transform into a more complex chargeback. 

You’ll even gain access to order unreceived mitigation tools that track your orders to keep customers in the loop and prevent lost deliveries. This will enhance customer relations, too.

But if you’re struggling with how to fight fraud chargebacks still, don’t worry. Disputifier can boost your chargeback win rate through customized, automated chargeback representment. 

We handle everything without you having to lift a finger so you can focus your attention on more pressing matters. Our customers see a 67% improvement on average, and they only pay when we win! 

Knowing how chargebacks affect a business, why not invest in peace of mind with Dipsutifier today? See for yourself what a difference the best chargeback prevention companies can make!

Closing Thoughts on BIN Lookup

So, what is BIN lookup? As you can see, this is a powerful tool for identifying fraudulent activity, protecting not just your business’ reputation and bottom line but also cardholders.

However, BIN lookups are just one piece of the puzzle. To truly safeguard your company from fraud, you should combine this method with other proactive strategies.

Our blog has more resources on topics like Visa RDR, chargeback letter to customer, what happens if a merchant does not respond to a chargeback, chargeback for services not rendered, pre-arbitration, chargeback timeframe, how to win a chargeback as a merchant, chargebacks for item not as described, chargeback vs dispute, or chargeback insurance.

Don’t let fraud catch you off guard and take a toll on your business. Invest in a comprehensive approach to fraud prevention with Diputifier today and harness the power of automation!

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