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