Many consumers don't quite understand the differences between different types of credit cards. Many wrongly assume that all credit cards are the same and it doesn't matter which one you have. After all, they all report to credit bureaus and if you can purchase items online or in a store, then that's the bottom line, right? Wrong. >>>

In the growing global economy, there are many different kinds of credit cards on the market. Personal, business, and even secured credit can make the average credit consumer feel a little light-headed just trying to digest all the information available, let alone trying to decipher which card would be the right one for them. >>>

Commerce has always had to endure the ramifications of fraud. There's not a single business on the planet that hasn't, at one time or another, had to deal with consumers trying to steal from them in some form or another. >>>

To properly understand how BIN database can be effectively used to help prevent chargebacks, it’s important to know precisely what a chargeback is. Merchants have long known this term and have dreaded hearing or seeing it in their daily balance sheets. A chargeback can occur for any number of reasons including a technical issue, consumer dissatisfaction, or fraud. >>>

Every year, billions of dollars are lost to merchants due to the pervasive and growing problem of credit card fraud. Many people, including consumers, believe that this is a victimless crime, that if it happens to them, they can merely call up their credit card company, or issuer, and have the situation resolved. Many credit card companies even offer fraud protection, sometimes at an extra fee, so consumers don’t think too much about this festering problem.

However, it’s not victimless. When someone’s credit card is stolen, or the number at the very least, and used to make purchases, whether online or in brick and mortar stores, and the consumer whose credit card was fraudulently charged calls in about the issue, the merchant is the one who pays the price most often. Credit card companies don’t merely wipe the charge from their books and write it off as a tax-deductible liability, they turn to the merchant for charge-backs and other penalties.

Now, the merchant will then turn around and raise their prices to offset the cost of this fraud, which affects the consumer in the end. But merchants are figuring out a way to combat this growing problem of credit card fraud. They are turning to BIN databases for help. BIN numbers are Bank Identification Numbers on the credit card. These are generally found on the front of the card, but they can also be found in the magnetic strip on the back (that black strip that the computer reads).

BIN database is one of the most effective ways in fighting fraud as it allows merchants to cross-reference the credit card information handed to them with a BIN database to ensure that the card is authentic. When using a BIN database, a merchant is able to check that the number is current and legitimate, the issuing company’s information, and even the consumer’s billing information, including zip code.

The information collected by the merchant during this transaction can help them determine if they will move forward with the transaction or if there is some doubt about the legitimacy of the presenter’s identity. These BIN databases are not only for traditional brick and mortar based stores, either. Online businesses have taken a vested interest in utilizing this technology and are learning that protecting themselves against fraud is the only way to get closer to not being a victim of this crime.

BIN database is an excellent resource for merchants to look out not only for their best interest but also the interests of their customers. When a merchant can show their customers that they’re fighting fraud effectively, this can be a great selling point do draw in more business. By running a BIN check through BIN lookup or a BIN database, the merchant is serving two purposes that lead to a better and safer shopping experience. If all merchants were to do this service, then fraud could be virtually eliminated, then there it would truly be a victimless crime.