As many business owners are aware, fraudulent credit card charges results in millions of dollars in loss from businesses around the globe every single year. Owners of businesses are susceptible to these losses as the majority of transactions that are completed through the e-commerce platform are created using credit cards – and therefore increasing the chance of loss through credit card fraud.
Taking the time to implement a secured credit card bin numbers system to reduce credit card fraud through the verification of the transactions that are completed online can be an effective way to reduce charge backs and other fees that accrue when the merchant becomes a victim of credit card fraud.
How can the merchant use credit card bin numbers to protect their business?
Using credit card bin numbers databases, the merchant is able to increase the level of protection while completing credit card transactions through secure verification techniques that are performed each time that a credit card transaction is completed. Using the information available through the bin databases, the merchant is able to confirm the credit card number, type of credit card, issuing country and other information through the simple first six digits of the credit card number, referred to as the bank identification number.
E-businesses are able to use the information found through these database systems to confirm the validity of the credit card and therefore reduce the instance of credit card fraud that is going to cause the online business to take a loss in profits, as well as a loss of inventory through fraudulent charge backs when the customer has already received the merchandise.
Using the information that has been found relating to the credit card, the merchant can make the decision whether to approve or decline the credit card transaction. Useful information found throughout the database search will include the country of origin of the credit card, as there are some countries that are synonymous with credit card fraud and high levels of fraudulent activity. Through a simple bin database search, the merchant is able to program the transactions to approve or decline these types of transactions, based on the findings that are displayed after the simple search of the six digit bank identification number of the credit card.
Credit Card Bin Numbers and Prepaid Credit Cards
More and more of the fraudulent credit card activity that is being reported is being reported for customers that are using prepaid or gift credit cards. Many online businesses have red flags that come up when these types of cards are being used and can therefore allow the business owner to flag the transaction to have a closer look at the details, or use the card bin numbers search to make the final decision of whether the transaction is going to be approved.
Online businesses can set the database system to work to their specifications, allowing for intervention and further investigation when required. Using this method, online business owners can reduce the instance of fraud using credit cards and protect their assets and finances from credit card fraud.