Almost everyone uses a BIN or IIN, but very few people know what they are or how they work. The fact of the matter is, every time you make a payment using plastic, whether it be a debit card, credit card or even a Christmas gift card, you put the BIN system to work for you. But what exactly are BINs and IINs?
Understanding the Credit Card Bank Identification Number (BIN) System
BIN stands for Bank Identification Number and IIN is the acronym for Issuer Identification Number. These numbers are made up of the first six digits on the front of your card. The number is used to identify the party who issued the card to you. BIN and IIN are generally the same thing, with the terms being interchangeable.
But how does the BIN work? The moment you swipe your card at the grocery store, the system knows exactly which bank issued the credit or debit card you're using. Those numbers on your card aren't random, and the BIN is just part of the card identification process.
As the benefits of the BIN system are becoming more widely known, an increasing number of industries are using it. Electronic benefit transfer cards and stored value cards use BIN and IIN numbers to keep track of customers and the transactions they make. Even pharmacies are getting in on the BIN action.
If you're asking yourself why a pharmacy would need the same system the credit card companies have been using, you've just asked a question with a very good answer. By using the BIN system the pharmacies can link their patients to the insurance networks they belong to, making it easier to process insurance claims. Instead of waiting a few days for an insurance approval, the BIN system makes approval times virtually instant.
More and more industries are beginning to incorporate the use of the BIN and IIN systems. What does this mean for you? As a consumer it means purchases, claims and transactions will be increasingly hassle-free. As a business it can mean a reduction in fraud and theft. Overall, the increasing use of the BIN system is a positive change and both consumers and businesses will benefit from it in the long run.
