Visa Expands to 8-Digit BINs in 2022 — What Does this Mean for CUs?
Since the inception of debit and credit cards, Bank Identification Numbers (BIN) have provided a system to identify a card type, issuer, and person assigned to each specific card. A BIN forms the first six digits of a Primary Account Number (PAN) followed by the unique card number.
Due to the changes in card payments methods, increase in issuers, and the frequent need to mass re-issue member cards due to compromises, credit card companies are moving away from six-digit BINs. Visa will expand to eight-digit BINs beginning in April 2022.
To understand the impact this will have on your credit union, Strategic Link partner LSC has some recommendations:
- Evaluate how payments and processing are routed and verify each configuration, as some may only support six-digit BIN fields. Each routing component must support this migration, and coordinated testing may extend your preparation timeframe. Additionally, some components may have individual certification periods that potentially include freeze and blackout periods toward the end of the year.
- Plan for additional preparation time in case programming updates, member communication, and reporting procedures need to be considered. Failure to simply verify one source or table could result in card declines, misrouted transactions, or extensive settlement complications.
- Create a flow chart and identify key players and systems that are paramount to your payments ecosystem, which will provide the framework for verification and communication with vendors.
Need assistance with this process? LSC is here for you. For over 50 years, LSC has provided quality information, products, and services, enabling credit unions to operate, compete, and prosper in the financial marketplace.