11/29/21, 4:34 PM
`
`Bank Identification Number (BIN) Definition
`
`PERSONAL FINANCE
`
` CREDIT CARDS
`
`Bank Identification Number (BIN)
`
`JULIA KAGAN
`By
`Reviewed by JANET BERRY-JOHNSON
`
` Updated September 21, 2021
`
`TABLE OF CONTENTS
`What Is a BIN?
`
`How BINs Work
`
`Special Considerations
`
`Example of a BIN
`
`What Is a BIC?
`
`EXPAND +
`
`What Is a Bank Identification Number (BIN)?
`The term bank identification number (BIN) refers to the first four to six numbers on a payment card. This set of
`numbers identifies the financial institution that issues the card. As such, it matches transactions to the issuer of the
`card being used. BINs can be found on various payment cards, including credit cards, charge cards, and debit cards. [1]
`The BIN system helps financial institutions identify fraudulent or stolen payment cards and can help prevent identity
`theft. [2]
`
`Advertisement
`
`https://www.investopedia.com/terms/b/bank-identification-number.asp
`
`1/8
`
`AuthWallet, LLC Ex. 2004-1
`Unified Patents v. AuthWallet, LLC IPR2021-01260
`
`

`

`11/29/21, 4:34 PM
`
`Bank Identification Number (BIN) Definition
`
`KEY TAKEAWAYS
`A bank identification number is the first four to six numbers that appear on payment cards.
`
`BINs are found on credit cards, charge cards, prepaid cards, debit cards, and gift cards.
`
`The BIN helps merchants evaluate and assess their payment card transactions.
`
`The number allows merchants to accept multiple forms of payment and allows transactions to be processed
`faster.
`
`BINs can help financial institutions identify fraudulent or stolen cards and prevent identity theft.
`
`How Bank Identification Numbers (BINs) Work
`The bank identification number is a numbering system developed by the American National Standards Institute (ANSI)
`and the International Organization for Standardization (ISO) to identify institutions that issue payment cards. The ANSI
`is a nonprofit organization (NPO) that creates business standards in the U.S. while the ISO is an international
`nongovernmental group that creates standards for various industries. [3] [4]
`
`Advertisement
`
`https://www.investopedia.com/terms/b/bank-identification-number.asp
`
`2/8
`
`AuthWallet, LLC Ex. 2004-2
`Unified Patents v. AuthWallet, LLC IPR2021-01260
`
`

`

`11/29/21, 4:34 PM
`
`Bank Identification Number (BIN) Definition
`
`All payment cards come with a BIN number. This is a set of four to six numbers randomly assigned to debit cards, credit
`cards, charge cards, gift cards, electronic benefit cards, and other payment cards. The number is embossed on the
`front of the card and appears in print just below as well. The first digit specifies the major industry identifier. The digits
`that follow specify the issuing institution or bank. [1] For example, Visa credit cards start with a four, which falls under
`the banking and financial category.
`
`When a customer makes an online purchase, the customer enters their card details on the payment page. After
`Advertisement
`submitting the first four to six digits of the card, the online retailer can detect which institution issued the customer’s
`card including:
`https://www.investopedia.com/terms/b/bank-identification-number.asp
`
`3/8
`
`AuthWallet, LLC Ex. 2004-3
`Unified Patents v. AuthWallet, LLC IPR2021-01260
`
`

`

`11/29/21, 4:34 PM
`card including:
`
`Bank Identification Number (BIN) Definition
`
`SPONSORED BY
`DISCOVER PERSONAL LOANS
`3 Tips for Paying Down Debt
`
`LEARN MORE
`
`The card brand or Major Industry Identifier, such as Visa, MasterCard, American Express, and Diner's Club
`The card level, such as corporate or platinum
`The card type
`The issuing bank country
`
`When the customer initiates a transaction, the issuer receives the authorization request to verify if the card and
`Advertisement
`account are valid and whether the purchase amount is available. This process results in the charge being either
`approved or denied. Without a BIN, the credit card processing system would be unable to determine the origin of the
`customer's funds and would be unable to complete the transaction. [1]
`
`Learn More
`
`The new
`Citi Custom Cash Card
`SM
`
`https://www.investopedia.com/terms/b/bank-identification-number.asp
`
`4/8
`
`the new
`Citi Custom Cash Card
`
`SM
`
`AuthWallet, LLC Ex. 2004-4
`Unified Patents v. AuthWallet, LLC IPR2021-01260
`
`

`

`11/29/21, 4:34 PM
`
`Bank Identification Number (BIN) Definition
`Advertisement
`
` Important: The BIN number allows merchants to accept multiple forms of payment and allows faster
`processing of transactions.
`
`Special Considerations: What BINs Are Used for
`the new
`BINs have a variety of useful applications. The primary purpose is to allow merchants to evaluate and assess payment
`Citi Custom Cash Card
`SM
`card transactions.
`
`The new
`Learn More
`Citi Custom Cash Card
`SM
`They also allow merchants to identify originating banks along with their address and phone number, and whether
`issuing banks are in the same country as the device used to make the transaction. It also verifies the address provided
`by the customer.
`
`But more importantly, the numbering system helps identify identity theft or potential security breaches by comparing
`data, such as the address of both the issuing institution and of the cardholder. [2]
`
`FAST FACT
`Bank identification numbers are also commonly referred to as issuer identification numbers (IINs).
`
`Example of a Bank Identification Number (BIN)
`Here's a hypothetical example to show how BINs work. Let's say a customer uses their bank card at the gas pump when
`they fill up their tank. Once they swipe the card, the system scans the BIN to detect the specific institution that issued
`the card. An authorization request is then put on the customer's account. The request is authorized within a few
`seconds, and the transaction is approved if the funds are available or declined if the customer doesn't have enough
`funds to cover the charge.
`
`What Is a Bank Identification Code?
`A bank identification code, which is also known as a bank identifier code, is a special code made up of eight to 11
`digits. It is an international standard that identifies a bank or non-financial institution whenever someone makes an
`international purchase or transaction. A BIC can be connected or non-connected. The former is part of the SWIFT
`network and are called SWIFT codes while the latter is generally used for reference only. [5]
`
`How Do You Use a Bank Identification Number?
`Consumers generally don't use BINs but it is important to know what they mean. The first digit is the major industry
`identifier while the remaining digits specify the issuing financial institution.
`
`When you make a purchase or transaction, the issuing institution receives a request for authorization. This request
`attempts to verify the legitimacy of the account and whether the funds are available. If everything checks out, the
`transaction is approved. If not, the institution declines it.
`
`What Is BIN Scamming?
`BIN scamming is a fraud scheme. It occurs when a fraudster calls impersonating someone from your bank, claiming
`that your account information has been compromised. The scammer may give you information to try to gain your
`
`https://www.investopedia.com/terms/b/bank-identification-number.asp
`
`5/8
`
`AuthWallet, LLC Ex. 2004-5
`Unified Patents v. AuthWallet, LLC IPR2021-01260
`
`

`

`Bank Identification Number (BIN) Definition
`11/29/21, 4:34 PM
`trust. Once you're hooked, they try to confirm the number of your card and begin with asking where you bank. Once
`
`they have that information, they give you the bank identification number and ask that you confirm the remaining digits
`on the card along with any other information they can get from you.
`
`Why Are BIN Numbers Important?
`BINs allow merchants to accept multiple payments at the same time. They also make payment processing much faster.
`
`BINs help banks and financial institutions identify cards that have been compromised or stolen because it provides
`information about the type of card being used, the type of bank, and other information about the issuing company and
`cardholder.
`
`The Bottom Line
`Bank identification numbers are used to identify which payment cards belong to which issuing financial institution.
`But aside from that, they help facilitate financial transactions and ensure that consumers are protected from identity
`theft and fraud. That's why it's so important to keep your financial information, including your BIN, confidential.
`
`Remember, your bank will never call or send you an email to inform you that your account information has been
`compromised. If you ever receive a call, don't engage with the scammer. Instead, hang up and notify your bank. You
`can also file a complaint with the FTC on the agency's website.
`
`Find the Credit Card That's Right for You
`Getting the most from your credit card starts with choosing the one that suits your needs. With Bank of America, you can
`compare features and benefits of different cards, and select the one that's right for you. Whether you're looking for
`customized cash rewards or travel rewards, Bank of America offers a variety of options to choose from. Learn more about
`Bank of America's credit card offers and apply now.
`
`SPONSORED
`
`ARTICLE SOURCES
`
`Open a New Bank Account
`
`Advertiser Disclosure
`
`Checking Account
`
`Savings Account
`
`Savings Account
`
`Citi
`
`Citi Priority Checking Account – Earn up to
`$1,500 with required activities
`
`American Express National
`Bank
`
`0.40% APY, No Fees, No
`Minimum Balance, FDIC
`Insured
`
`APY as of 03/11/2021
`
`Citi® Accelerate Savings
`
`Get more for your money with
`0.50% APY. Select markets only.
`Member FDIC
`
`LEARN MORE
`
`LEARN MORE
`
`LEARN MORE
`
`https://www.investopedia.com/terms/b/bank-identification-number.asp
`
`6/8
`
`AuthWallet, LLC Ex. 2004-6
`Unified Patents v. AuthWallet, LLC IPR2021-01260
`
`

`

`11/29/21, 4:34 PM
`
`Bank Identification Number (BIN) Definition
`
`Related Terms
`
`Foreign Transaction Fee
`A foreign transaction fee is a 1%–3% charge for transactions made using a domestic payment card in a foreign country. more
`
`What Issuer Identification Numbers (IIN) Tell Us
`The issuer identification number (IIN) is the first few digits of a payment card number issued by a financial institution. more
`
`What Is Mastercard?
`A Mastercard is any electronic payment card that uses the Mastercard network for processing transaction communications. more
`
`Primary Account Number (PAN)
`A primary account number is a unique identifier designated for a primary account such as a credit or debit card. more
`
`Reference Number Definition
`A reference number is a unique identifier assigned to any financial transaction including those made using a credit or debit card. more
`
`Address Verification Service (AVS)
`The Address Verification Service (AVS) is used by financial institutions to identify fraudulent or suspicious credit card transactions.
`more
`
`Partner Links
`
`25 years' experience as a premium FX provider.
`Start trading with Oanda. Losses can exceed
`investment.
`
`Apply sophisticated trade strategies in your IRA
`with the power of thinkorswim®
`
`Start making moves with your money. Invest w/
`E*TRADE today!
`
`Commission-Free Stocks, ETFs & Options Trades
`with TradeStation. Open an Account
`
`Related Articles
`
`CREDIT CARDS
`Visa vs. Mastercard: What’s the Difference?
`
`https://www.investopedia.com/terms/b/bank-identification-number.asp
`
`7/8
`
`AuthWallet, LLC Ex. 2004-7
`Unified Patents v. AuthWallet, LLC IPR2021-01260
`
`

`

`11/29/21, 4:34 PM
`
`Bank Identification Number (BIN) Definition
`
`BANKING
`Banking 101
`
`TRUSTe
`
`CREDIT CARDS
`Terms of Use
`About Us
`How Mastercard Makes Money: Customers Pay Volume Fees
`Dictionary
`Editorial Policy
`
`Advertise
`
`Privacy Policy
`
`News
`
`Contact Us
`
`CREDIT CARDS
`Careers
`Is Cash or Credit Better for European Trips?
`
`California Privacy Notice
`
`Investopedia is part of the Dotdash publishing family.
`
`CREDIT CARDS
`PayPal vs. Credit Card: Which Is Safer?
`
`BITCOIN
`How to Buy Bitcoin
`
`https://www.investopedia.com/terms/b/bank-identification-number.asp
`
`8/8
`
`AuthWallet, LLC Ex. 2004-8
`Unified Patents v. AuthWallet, LLC IPR2021-01260
`
`