Three Things a Bank Identification Number Does For Consumers and Merchants
Although many people are aware of the fact that each of their credit cards has a unique number on it, which is used to process transactions, not many people are actually aware of what that number means, how it's used, and how it protects them from fraud. It is much more than just a unique number to identify the card, and process the payment. The number on the card is known as the pink identification number, which is used in a variety of different ways to identify key aspects of the transaction. These aspects include the bank in which the funds are going to be removed from, the issuer of the credit card, and a unique number that is utilize for transactions across the world. Take the following into consideration when considering what this number can do for both consumers, as well is the merchants that utilize it.
Identifies the Bank
The main reason why the bank identification number is placed on each and every card, is the fact that it is used to identify key information. Without it, many institutions would not be able to readily locate different information about the banking institutions that have issued the card to the consumer. You need to make sure that you have a solid understanding of this, and that you are doing everything that you possibly can to protect this number, because it can be used to steal your identity, and commit fraud by utilizing this number to make purchases at different locations.
Identifies the Issuer
Along with the bank itself, the bank identification number is also used to identify the card issuer. A card issuer would be a company such as Visa, MasterCard, Discover card, American Express, or one of the department stores that issues their own credit cards exclusively for use it their department store. This portion of the number is known as the Issuer Identification Number. This gives additional information throughout the number as well, such as the bank ID number, as well is the phone number of the bank so that they can be easily contacted if there is ever a discrepancy with the bank identification number.
Unique Number for Transactions
The number provides you with a unique number for all transactions that you utilize with that card, and will ensure that you are able to be easily identified and contacted should anyone steal the card, and begin using it for their own nefarious purposes. It is very important that you protect the number on the card the best of your ability, and do not ever leave it sitting around where it could become stolen.
There are many things that need to be taken into consideration when you are looking at all of the available options, and attempting to understand the bank identification number system. Man companies have started to implement the use of a Bin Lookup which will allow the company to cut down on the amount of fraud that they have to deal with, well protecting consumers at the same time.
The bank identification number includes an Issuer Identification Number, and the Bin Lookup service protects merchants and consumers from fraud.
