Your Business Needs a Dependable Anti-Fraud System
If you are an entrepreneur whose business is exclusively dependent on internet transactions, you might be haunted by the possibility of internet fraud wreaking havoc on your business dealings. The threat of fraud is real; the risks are not overstated, and understandably fraud prevention must be on the top of your business agenda.
What are the possible scenarios that you can be confronted with in your day-to-day business?
Here are some typical examples:
- You have launched your website and now you are busy building up traffic to boost your business. But do you know who your customers are? Are they legitimate?
- You receive a barrage of orders for your product, a great feel-good factor indeed, but are you sure about the credentials of the credit card you are going to charge?
- You have received payment for a sold product, and now you have shipped the product. What is the risk that the card is stolen and the genuine card holder disputes the transaction?
- All your sales are online and your first payments are coming in. Are you sure about each customer’s identity?
- Now your business is moving like a breeze, apparently no issues, high volumes, and everything looks sunny. What do you do if organized hooligans with the help of stolen cards have boosted your sales?
- You have managed to succeed in this cut-throat trade, but now a jealous competitor is keen to put you out of business. The dubious competitor fakes a lot of orders; you have shipped them and now the competitor disputes all the charges. How do you wriggle out of the situation?
The above constitute only the tip of the iceberg of a potentially massive scale of fraudulent activities that are either already devised, waiting to be stealthily executed, notwithstanding addition to the new ingenious ones on the anvil in a latent phase ready to strike unsuspecting businesspersons. Internet marketing is replete with deceitful players. You need to put in place a mechanism that not only is 100 percent foolproof but also capable of plugging newer and more devious fraudulent methods that are concocted every day.
Bin Database System
Bank Identification Number database or BIN database is the most effective strategy to tackle the scourge of internet fraud.
What is a BIN?
Bank Identification Number or BIN represents the first six digits of the user’s credit, debit, or prepaid card numbers that facilitate making of each electronic transaction. The first six digits are also called issuer identification numbers (IIN). The Bank Identification Numbers (BIN) or IIN database and its membership are managed by the American Bankers Association and are updated monthly. Online merchants use BIN database to validate transactions.
Nevertheless, for the BIN database or IIN database to be effectual, it must fulfil the following conditions.
- It must be user-friendly: Professional database preferably is the best choice. Yet, there is no reason why you cannot create your own.
- It must be accurate: Fortunately, these days most trusted databases are 99 percent accurate, more so because these databases are monitored and updated regularly. Users look for databases that provide comprehensive information of the country of residence and the BIN numbers. Verification cannot be complete without all these relevant details. The obvious source to get these details is from online merchants, financial institutions, and banks.
- It must conform to the highest quality: Dependability is a must-have. It should be free from spelling errors to enable accurate automatic filtering. A BIN databases has to ensure conformity to acceptable standards, and therefore naturally instil confidence among users. Reputable databases willingly offer assistance to provide updates on a regular basis as well as provide assistance in BIN correction and also in locating unidentified BINs.
- It must be cost-effective: Typically there are different rates for bulk usages and single rates. Choose one after a careful consideration of quality and ease of use.
So what is the call? Making your own anti-fraud system could be one of the workable solutions. For that you need to collect data on internet card processing behaviour and build up a database with a large number of different fraud models. Once you are able to do that, checking bank identification numbers will save you money. Alternatively, you can buy professionally made BIN database that has a good record of verifying credit card details, reducing chargebacks and preventing fraud attempts.
Here is how bin databases help you
- The first six digits of the BIN provide the most vital identification of the user that helps you validate an order. Most importantly, it provides the name of the issuer bank and the country of its origin. It provides information whether the card is a credit, debit, or a prepaid card.
- The database prevents you from getting trapped by fraudulent transactions. When you run a BIN through an online validation service, you have a chance to cross-check suspicious transactions and if necessary put a hold on them. In effect you can pre-empt fraudulent transactions before they get the better of you. Another great advantage is you can use the BIN in a customized way to suit your business needs. You can seamlessly integrate the credit card BIN checker with your business requirements and weed out banks having a history of shady bank transactions. Additionally, if there is restriction to export to a particular country, you can exclude cards issued from that country’s billing address automatically.
- BIN identification numbers help you charge variable fees applicable for debit and credit cards. This is especially true for cards issued from outside the USA that need to be charged extra. Even a business card has a higher charge than a personal card. With a proper merchant account, you can set an automated arrangement whereby with a BIN database lookup you can assess the exact fees that needs to be charged with credit cards.
Internet card fraud is on the rise. It would be an unpardonable act to run an internet business without the help of Bank Identification Number database. Even optimistically assuming a very low-risk scenario, the potential damage to businesses can be huge.