1. What is BIN Migration?
BIN (Bank Identification Number) is the first part of a credit, debit, or prepaid card number, traditionally 6 digits long, that identifies the issuing institution. BIN Migration refers to the process of updating or transitioning BINs to accommodate industry changes, such as the introduction of 8-digit BINs or migration from one issuing partner to another.
The migration to 8-digit BINs is driven by the expansion of digital transactions and the need for more unique card numbers as part of PCI-DSS and card network mandates.
2. What is an 8-Digit BIN?
Historically, BINs consisted of 6 digits, but as payment ecosystems have grown, the International Organization for Standardization (ISO) updated the standard, expanding BINs to 8 digits. The new format provides a greater number of unique identifiers for issuers, enabling them to meet growing demand.
• 6-digit BIN: Common before 2022.
• 8-digit BIN: Now standard, allowing for more combinations and unique card identification.
This transition was mandated globally by major card networks like Visa and Mastercard starting from April 2022 to future-proof the ecosystem and ensure issuers have adequate BIN capacity.
3. How to Perform BIN Migration?
The process of migrating to an 8-digit BIN requires several key steps, and it involves coordination between multiple stakeholders, including the card network, payment processors, banks, and issuers. Here’s a high-level outline of the steps involved:
• Assessment and Planning: Evaluate the current card inventory and understand how many 6-digit BINs are in use. Identify impacted systems and processes that rely on the 6-digit BIN structure (e.g., billing, customer service, fraud detection).
• Communication with Networks: Card networks like Visa, Mastercard, or others must be contacted to get approval for the 8-digit BIN ranges. They will provide guidance on when and how to implement the migration.
• Technology and System Upgrades: Update internal systems (such as payment processors, authorization platforms, databases, and APIs) to handle 8-digit BINs. Legacy systems might require reconfiguration or upgrades to recognize the expanded format.
• Test and Validate: Before full deployment, perform sandbox testing of the 8-digit BIN in real-world scenarios to ensure proper functioning (such as transaction processing, customer support, and reconciliation).
• Implementation and Monitoring: After successful testing, the new 8-digit BINs are deployed across systems, with monitoring in place to ensure smooth transition and proper usage.
4. Why is BIN Migration Important?
BIN migration is essential for several reasons:
• Scalability: As the demand for cards increases globally due to new fintech solutions, credit, debit, and prepaid programs, the 8-digit BIN provides more room for unique card identification and avoids a shortage of available numbers.
• Compliance: As mandated by card networks (like Visa and Mastercard), migration to 8-digit BINs ensures that card issuers remain compliant with global payment standards.
• Operational Efficiency: Issuers with access to a larger range of BINs can more easily manage different card products and geographies, offering more tailored solutions to customers.
• Risk and Fraud Management: BINs are integral to fraud prevention. A successful migration to an 8-digit BIN format ensures that fraud detection systems can continue functioning correctly in identifying potential risks based on the issuer’s identification.
5. Who Can Help a Company or Card Program Migrate?
Several players in the financial ecosystem can assist in the BIN migration process:
• Payment Networks (Visa, Mastercard, etc.): These organizations provide the official framework and guidelines for BIN migration, issuing the new BINs and supporting companies with their transition.
• Payment Processors and Issuers: Companies like M2P Fintech, Pine Labs, Razorpay, and Worldline provide the infrastructure and technical expertise to facilitate smooth transitions in BINs. These companies ensure that their systems and services are compliant with the new 8-digit BIN format and help their clients with the necessary updates.
• Card Management Platforms: SaaS companies that specialize in card management (like Marqeta, GPS) can guide issuers and fintech companies through the migration process by providing software solutions to handle the transition.
• Regulatory Authorities: In some regions, central banks or regulatory authorities may provide frameworks and timelines for BIN migration.
BIN migration, particularly to the 8-digit standard, is a crucial step for the scalability and security of payment systems. It requires a coordinated approach between card networks, payment processors, and technology providers. Entities like M2P Fintech, along with other payment infrastructure providers, offer essential support for issuers undergoing this migration to ensure compliance and operational efficiency.