With the new that Mastercard® has received an additional range of BIN numbers consisting of 2-series numbers to add to the 5-series that they currently provide, what does this mean to you and are you ready for the change?

Fundamentally, the 2-series BINs operate in the same way as the 5-series and they have made changes to their systems to accommodate the new numbers.  Readiness for the 2-series across Mastercard® issuers, merchants and other partners is tracking on target dates listed on their dedicated web site.  Mastercard® customer financial institutions can expect to be issued 2-series BINs starting in 2017.

 

So what is a BIN number?
Bank Identification Numbers (BINs), which are the first six-digits of the account number, are fundamental to payments.  They identify the issuing institution for the account and ensure that each transaction is routed correctly.

 

As a merchant, what do I need to know?
All merchant POS (Point of Sale) terminals and related systems, webpage checkout software and anywhere a Mastercard® card number is accepted or housed, must be 2-series ready per timing in later in this release.  Merchants should work with their acquirer or service provider to evaluate their systems to determine whether updates are needed to accept 2-series BIN payments.  Merchants who would like to request 2-series test or production cards can send an email to [email protected].

Potentially, here are some of the issues you may need to address:

Point of sale (POS) terminals
Card Present/Point of Sale Terminals will need to be updated. If you have purchased your own terminal or if you are a merchant with multi-lane checkout solutions, you may need to contract your supplier/provider for an update. Merchants with terminals provided and supported by your acquirer or ISO should contact them for information but they will likely be rolling out updates automatically.
Card not present / e-commerce
Ensure that your web applications and online store’s payment processing/ gateway is updated to correctly identify cards on Mastercard 2-series BINs. This may be self-coded so you can validate this, or, if achieved with plugins or other third party modules or scripts/routines, from the developers or providers of these.
Fraud & risk management
If you are using third party solutions or obtaining BIN data for your own internal systems, check with the providers/suppliers to ensure that they will be ready for 2-series BINs in addition to any BIN driven logic within the systems and configuration tools.
Data management / PCI data security standards
While PCI DSS is not impacted by the launch of Mastercard’s 2-series BINs, check to ensure that systems or routines being used to remain compliant with PCI DSS will successfully manage transaction data that will involve a Mastercard card from a 2-series BIN.
Dispute resolution systems
When there’s a dispute over a transaction (a chargeback) the systems in which you manage these, obtain copies of transaction documentation etc. may need to be updated to ensure that transactions involving a Mastercard 2-series BIN can be handled the same as the existing 51-55 series BINs.
Loyalty programs
If you have a loyalty program that tracks consumers via the payment they use, this may need to be updated to ensure the new numbering scheme of 2-series BINs is supported.
Data warehouse & analytics
Some merchants may be using the BIN or other elements of the account numbers involved in transactions to do analytics and data mining. Feeds to you data warehouse and/or analytics systems should be checked to ensure transactions on 2-series BINs can be received and categorised correctly.
Staff training / awareness
Include information about Mastercard 2-series BINs in your ongoing training materials for all your team members that interact with consumers and/or the payments process.

 

When do BIN changes come into effect?
From January 2017, card issuers were starting to be issued with the additional 2 numbers, however merchants and acquirers need to be ready before the end of June 2017.  You need to talk to your acquirer now to ensure you are ready to avoid losing out on sales and to avoid fines from Mastercard for non-compliance (subject to contract conditions).

 

What do the numbers mean on a card?

Example MasterCard with new BIN numbering

  • BIN – the first 6 digits – identifies the issuing institution for each customer account and enables transactions to be routed properly.
  • Account range – the next 1-5 digits – is how accounts are managed and segmented.  Issuers use the account range to support ongoing innovation and safety and security.
  • The customer identification number makes up the remaining digits.  It is unknown to Mastercard and is defined and managed by the issuer.

 

 

 

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