Bank Identification Number - BIN

AAA

DEFINITION of 'Bank Identification Number - BIN'

The first four to six digits of a credit card. The bank identification number identifies the institution issuing the card. It is critical to the correct matching of transactions to the issuer of the charge card.

This prefix system also applies to debit cards, charge cards and electronic benefit cards.

INVESTOPEDIA EXPLAINS 'Bank Identification Number - BIN'

Although it is called a bank identification number, BINs are also used by other institutions, such as American Express. As increasing numbers of issuers are opting into the BIN network, the term issuer identification number (IIN) is increasingly used interchangeably with BIN.

The prefix system is also used to help identify potential security breaches or identity theft, by comparing such things as the location of the issuing institution and the address of the cardholder.

RELATED TERMS
  1. Authorization Code

    A generic term that refers to a code or password that identifies ...
  2. Credit Card

    A card issued by a financial company giving the holder an option ...
  3. Identity Theft

    The crime of obtaining the personal or financial information ...
  4. Offline Debit Card

    A card that combines characteristics of both a traditional (online) ...
  5. Charge Card

    A card that charges no interest but requires the user to pay ...
  6. Credit Limit

    The amount of credit that a financial institution extends to ...
Related Articles
  1. Identity Theft: How To Avoid It
    Insurance

    Identity Theft: How To Avoid It

  2. Credit, Debit And Charge: Sizing Up ...
    Credit & Loans

    Credit, Debit And Charge: Sizing Up ...

  3. Take Control Of Your Credit Cards
    Credit & Loans

    Take Control Of Your Credit Cards

  4. Should You Pay In Cash?
    Budgeting

    Should You Pay In Cash?

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center