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Any business that sells goods and services wants to provide them to the widest possible marketplace. Selling online gives merchants that visibility, but it also carries greater risk due to potential credit card fraud. Businesses large and small are now using sites to unlock the valuable information contained in a credit, debit and prepaid card's first six digits. Existing business owners or anyone contemplating starting a business which sells products or services directly needs to know how a BIN lookup online can benefit their business and grow profits. The first six numbers of every credit, debit and prepaid card are known as the BIN, or Bank Identification Number (sometimes referred to as the IIN or Issuer Identification Number). These first six numbers are unique to each card issuer and translate into other data that can be useful to merchants. With the use of a BIN lookup database, the information contained in the BIN can be put to use by sellers to help identify suspicious transactions and avoid fraud before it happens. Card fraud can devastate a business through excessive chargebacks. Traditional transaction management systems, are being compromised by ever more sophisticated criminal techniques and identify theft, so card fraud is on the rise. Incorporating a BIN number lookup database into an online retailer's transaction process adds another checkpoint that can help identify potentially fraudulent transactions. This is done, by conducting a risk assessment to each transaction and flagging those that rank highest. Through detailed statistical analysis, it has been shown that certain transaction types are at higher risk of fraud. Country of origin is one of these markers, in addition to the use of prepaid cards. Using a BIN lookup database service to identify these factors early in the purchase process allows a business to further scrutinize these transactions and determine if they are legitimate. Highly suspect transactions can be cancelled before they are fulfilled. Excessive chargeback can also lead to a suspension or cancellation of businesses' merchant account. This can happen when the chargeback ratio consistently rises above what the card issuers deems as average. For the vast majority of sellers, not being able to take credit cards would have a devastating impact on business. Businesses using a BIN lookup database program can also multiply profit margins by varying the fees associated with customers using different types of cards. Transaction fees on credit, debit and prepaid cards and cards issued in different countries often vary greatly. This puts the burden on the merchant to make up these fees, which can erode margins. Typically, merchants had no way of easily adjusting product, shipping and handling costs to cover these fees. By identifying the type of card using a BIN lookup database, a merchant can know the card type, issuing bank and country of origin that would identify the varying transaction fees. Armed with this knowledge, the retailer can assess the appropriate fees and gain stronger margins on profits. Incorporating BIN information website is now a standard for any business involved in direct selling to a global marketplace. A BIN lookup database helps reduce chargebacks, identify potentially fraudulent transactions and increase profit by assessing proper fees to purchases.
Now you are aware of the importance of bin lookup database. To assess the quality of data, try bin database look up tool.
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