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Posts Tagged ‘BIN Validation’

Validate Bank ID Numbers on Credit Cards to Reduce Chargebacks

Updated from original post What is a Credit Card BIN and How These Six Little Numbers can Protect Your Bottom Line, published 02/20/10

Gift cards and prepaid credit cards are hard to miss. In fact, they’re usually placed prominently at checkout counters alongside candy, gum, and other impulse items. According to GiftCards.com, over $100 billion is spent on gift cards each year and 93 percent of consumers in the United States purchase or receive gift cards each year. Prepaid credit cards are also widely available and account for roughly 7 percent of all non-cash transactions come from prepaid credit cards 7 percent of all non-cash transactions.

Though convenient for consumers, gift and prepaid cards can have a darker side that lead to bad outcomes for businesses. These cards are essentially anonymous, and businesses do not have many options for protecting themselves against their improper use. This is especially true for businesses that allow their customers to save credit card numbers to their accounts for subscriptions and recurring service fees.

Since these cards come loaded with a limited amount of money, they may not be usable beyond the first transaction fee. After all, there’s no line of credit to cover subsequent charges. Thus, businesses that offer recurring goods and services should be wary of accepting gift cards and prepaid credit cards.

Unfortunately, these cards and their numbers look just like any other credit or debit card. Without the right tools, you wouldn’t necessarily know that a customer has used a prepaid credit card to subscribe to your recurring service until it’s too late and the funds have been used up.

Fortunately, the first six numbers of a credit card, debit card, stored-value card, and Electronic Benefit Transfer card number, known as the Bank Identification Number (BIN), provide important clues. The BIN includes the following information:Bank Identification Number

      1. Issuing bank name
      2. Payment method
      3. Card type (credit card, debit card, gift card, prepaid card, etc.)
      4. Issuing country
      5. Phone number for that bank

With this knowledge, businesses can mitigate the risks associated with prepaid credit cards and gift cards. After identifying the card type, you could decline the transaction or request another form of payment.

BIN numbers can also be used to identify fraudulent orders. For example, if the credit card’s country of issuance is different from the customer’s inputted shipping address, this could indicate potential fraud.

BIN information puts you back in control over which payment methods to accept or decline. BIN validation can save businesses money in lost revenue from fraudulent transactions, reduce chargebacks, and lower fees associated with high-risk transactions.

Naturally, you’ll need a method for deciphering BIN numbers. Though BIN lists are available online, we’re talking about tens of thousands of records. The best way to validate BINs is with an automatic, real-time BIN validation tool. DOTS BIN Validation API can be integrated into your transaction process to pull the BIN information for each customer’s credit card. As a result, your system can automatically accept, decline, flag transactions for further review, or request another form of payment.

Learn more about using DOTS BIN Validation to mitigate the risk associated with prepaid credit cards and gift cards, both of which are becoming more and more popular with consumers.

Free BIN Validation API Trial Key

Two APIs To Make Online Business Less Taxing

eCommerce has redefined the B2B and B2C retail worlds; anyone with a budget and a vision can launch an online store front… That said, there are many unseen backend APIs, calculations and utilities that are critical for the creation of a successful ecommerce store front. Service Objects offers fast, easy-to-integrate solutions that help developers and merchants successfully automate eCommerce processes for better profit.

icon_dots_ftImagine the liability your online business could incur if your computer systems were not calculating sales tax rates correctly. DOTS FastTax calculates sales tax and use tax rates, based on street address, zip code, or simple city/state/county information for US and Canadian addresses. To ensure that only the most accurate tax rates are returned, the DOTS FastTax service utilizes our most popular API, DOTS Address Validation, behind the scenes to validate the full street address to the ZIP+4 level. It easily integrates into your shopping cart, so the correct tax rate will auto-populate during checkout. We host the tax data and update it monthly eliminating the time wasted manually calculating tax rates or the need to pay a third party to audit your books – a huge bonus for those concerned about how the Marketplace Fairness Act (if passed) will affect their business.

Another concern for eTailers is credit card fraud – integrate credit card type and location validation seamlessly into your online business processes. DOTS BIN Validation distinguishes between a prepaid and bank-issued credit card, identifies the network to which it belongs and the issuing country and financial organization. For example, an order placed with a credit card issued from Nepal with a shipping address in Arizona should be flagged for review before shipment is authorized.

Combining the power of DOTS FastTax and DOTS BIN Validation offers online merchants simple and effective ecommerce tools that integrate easily into most shopping cart systems.

Service Objects offers a diverse range of products to help your business run smoother, faster and more efficiently. Give us a call today to find out how we can help you build an affordable, profitable solution.

What is a Credit Card BIN and How These Six Little Numbers can Protect Your Bottom Line

For businesses and consumers, processing credit card transactions has come a long way. Previously businesses needed two forms of identification, to physically look at the card, review the signature on the back…then lay the card flat on card imprinter, place carbon paper over the card and force the handle from left to right for 3 carbon copies.This process was neither good for the business, who had no way to actually verify if the card had funds available on it; nor was it good for the consumer, who now had 3 unsecure copies of their credit card floating around for anyone to use for mail orders or internet orders.

The advent of electronic credit card processing and later the use of Card Verification (CVV) codes have dramatically changed the game and now go a long way to protect both businesses and consumers.

The proliferation of pre-paid credit cards and gift cards, however, has chipped away at some of that protection as far as businesses are concerned. Pre-paid cards are essentially “anonymous” and businesses do not have many options for protecting themselves against the improper use of these cards. This is especially true for businesses who’s “goods” are recurring service fees or incremental fees based on usage that must be billed monthly for example. Because there is no “line of credit”, a pre-paid card holder may have the amount of the fee available for the first authorization, but will not likely have it available for subsequent months.

Service Objects is the industry leader in real-time contact validation services.

Service Objects has verified over 2.5 billion contact records for clients from various industries including retail, technology, government, communications, leisure, utilities, and finance. Since 2001, thousands of businesses and developers have used our APIs to validate transactions to reduce fraud, increase conversions, and enhance incoming leads, Web orders, and customer lists. READ MORE