What is Issuer Identification Number (IIN)- Working and Importance
What is an Issuer Identification Number (IIN)?
Banks and financial institutions assign a distinctive code to payment cards, such as credit or debit cards, to identify the issuer, known as an Issuer Identification Number (IIN). The IIN represents the first six to eight digits of the card number, with the first digit indicating the card network and the remaining digits identifying the card issuer. This identification system helps merchant banks to manage transactions accurately. The IIN precedes the PAN, the Primary Account Number on a card. While the IIN identifies the card issuer, the PAN serves to identify the cardholder.
How Does an Identification Number (IIN) Work?
The table below presents a list of issuer identification numbers.
| First digit of IIN | Industry or a credit card company |
| 1 | Airlines |
| 2 | Mastercard |
| 3 | Entertainment and travel |
| 4 | Visa |
| 5 | Mastercard |
| 6 | Discover |
| 7 to 9 | Petroleum, health care, and other industries |
In the credit card system, the first digit of an Issuer Identification Number (IIN) indicates the Major Industry Identifier (MII). The MII denotes the credit card network. The remaining digits following the first digit make up the Bank Identification Numbers (BINs), which identify the credit card’s issuer, such as a bank or financial institution.
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Importance of the Identification Number (IIN)
Listed below are the primary benefits of the Issuer Identification Number (IIN):
1. Enhanced Security and Fraud Prevention
The IIN provides an added layer of security by verifying the authenticity and status of the payment card. It helps prevent fraud and unauthorized transactions.
2. Efficient Payment Processing
The unique IIN allows for easy identification of the processing network used for the card’s transactions. It ensures smooth and efficient payment processing.
3. Improved Payment Card Management
The numbering system associated with IIN enables financial institutions to identify a payment card’s issuer easily. It facilitates better card management and reduces errors and delays in processing transactions.
4. Increased Confidence in Transactions
The verification steps taken during each transaction using IIN help ensure that only authorized cardholders with sufficient funds can make transactions. It gives merchants and customers increased confidence in payment transactions.
Final Word
The Issuer Identification Number (IIN) plays a crucial role in facilitating safe and traceable transactions. It ensures that transactions are secure and authorized by the appropriate financial institution. As the landscape of payment technology continues to evolve, the importance of the IIN will only increase, and it will remain a vital component of the global financial infrastructure.
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FAQs
The initial four to six digits on payment cards are known as the bank identification number (BINs). These are found on various cards, such as credit cards, charge cards, debit cards, and other payment cards. It aids merchants in analyzing and evaluating their payment card transactions.
Yes, the issuer identification number (IIN) and the bank identification number (BIN) are the same. Both terms refer to the first six digits assigned to each payment card that identifies the card issuer. Since other financial institutions apart from banks also issue cards, BIN is also known as an issuer identification number (IIN).
In India, the Issuer Identification Number (IIN) refers to the first six digits on a payment card, including a debit or credit card. The IIN identifies the card issuer.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
