BIN numbers are important because they provide both merchants and payment processors with all the information they require to assess risk and interchange fees. The BIN number tells a merchant:

1. If the card issued from a trusted issuer.
2. If the issuer is located in the same geographic region as where the transaction takes place
3. If the address provided by the cardholder matches what’s on file and IP address if the transactions placed online.
4. The issuing bank’s/institution’s name, location and contact information.
5. The card type (credit or debit), card level and if the card is a part of a reward program.