Paid vs Free BIN Lookup: Pros and Cons

BIN lookup API is a tool used by developers, fraud analysts and business owners to collect information from a card by analysing the first six to eight digits on the debit or credit card. These digits are called Bank Identification Number (BIN) and are unique to each institution issuing the card. This tool is essential in supporting fraud detection and improved security, as it spots inconsistencies that might indicate fraudulent activities when a card is being used.

In this article, information on the features, advantages and uses of both free and paid BIN lookup tools has been compiled to assist developers and business owners in selecting the best BIN lookup tool for their activities.

What Do BIN Lookup Tools Actually Do?

BIN provides information about the card, such as the network, the issuing bank, the country, and the card type. The BIN lookup tool is used by merchants and consumers to verify the validity of debit or credit cards that are being used for online and offline transactions.

BIN lookup is important for fraud prevention as it verifies the card's legitimacy and identifies suspicious patterns like inconsistencies in location, for routing transactions by providing issuer information, and for KYC compliance by contributing to identity verification and risk assessment. This process provides businesses with essential data about payment cards, assisting them in making decisions and ensuring adherence to financial regulations relating to money laundering and fraud.

Free BIN Checker Vs Paid BIN API

BIN lookup tools are available in the free and paid versions. The choice of which is best for your business depends on the features that suit your needs. The features of each are;

Free BIN Lookup Tools: Pros and Cons

Pros

The advantages of using free BIN lookup tools include;

1. No Cost

BIN lookup tools are completely free and can be used repeatedly for a long time without any charges. However, to experience more benefits like access to API, real-time fraud detection, and higher accuracy, you have to upgrade to the paid version.

2. Quick For Testing

BIN lookup gives results quickly, making it possible for businesses to make decisions immediately, whether to flag the transaction or approve it.

3. Light Usage

The BIN lookup tool has a user-friendly interface that is easy to use and navigate, making the process faster.

Cons

1. Limited Data Accuracy and Outdated Databases

The databases of free BIN lookup tools are not regularly updated, and this can lead to false results that can also affect the decisions of businesses, fraud analysts and developers, as they may end up flagging a transaction that is legitimate and approving another that is fraudulent.

2. Lacks Support, Documentation, or SLAs

Free BIN lookup tools do not have an adequate support team to assist businesses in cases of errors. With the absence of SLAs, users may experience low-quality services and increased vulnerability to fraud.

3. No Fraud Scoring or Risk Flags

This tool lacks features like fraud scoring or risk flags that are important in identifying fraudulent BINs or transactions.

Paid BIN Lookup Tools: Pros and Cons

Pros

1. Up-to-date Databases

Paid BIN lookup tools regularly update their databases so customers have access to current and up-to-date information about BINs, issuer details, and card details.

2. Real-time Fraud Signals

Paid BIN lookup APIs contribute to real-time fraud detection by providing signals and data that may be linked to fraudulent transactions.

3. Support for API Integration And Scale

Paid BIN lookup offers more features than the free version. One of such features is the API integration, which makes it possible for businesses to integrate BIN validation tools into their systems for real-time fraud detection and handling of high transaction volume.

4. Greater Reliability And Performance

The use of BIN for fraud detection offers more features, such as real-time signals and quick response, which makes the paid API much more reliable as it helps to improve the performance of businesses as regards security.

Cons

1. May Require Monthly Cost or Tiered Pricing

Paid BIN lookups are very effective, but some businesses may not be able to use them due to the high cost of subscription, especially when it is required for large transaction volumes..

Choosing What's Right for Your Business

When selecting the right tool, whether free or paid for your business, there are certain factors you need to put into consideration, like the size of the data to be evaluated, budget, and accuracy. Paid BIN lookup tools are essential in cases when accuracy, real-time access, fraud signals, developer support, and pricing transparency are important to the business, while free BIN lookup tools are essential when the data to be evaluated is of low risk and small.

Why Greip's BIN Lookup API Stands Out

Built with Fraud Prevention in Mind

In the design of Greip's BIN Lookup API, fraud prevention is the main focus, and there are multiple built-in features that assist businesses in detecting and preventing fraudulent transactions. BIN lookup fraud prevention is particularly effective for validating card details, identifying high-risk transactions, improving security, and decision-making.

Updated Database + Issuer Metadata + High-Risk Flags

Greip's BIN Lookup API offers:

• Updated database: The database is regularly updated to ensure that current changes are accounted for, as fraudsters are constantly developing new strategies to bypass security measures.
• Issuer metadata: This feature provides businesses with information on the card issuer. If the information does not match any in the database, such transactions are flagged.
• High-risk flags: With all the features combined, this tool effectively identifies BINs that are of high risk and can be linked to fraudulent activities.

With all these features in place, businesses can identify high-risk transactions and make decisions that can help prevent fraudulent activities.

Transparent Pricing & Developer-Ready Documentation

Greip's BIN Lookup API offers transparent pricing and developer-ready documentation that makes it easy for business owners and developers to integrate the software into their systems, and also select a budget that favours the system.

Trusted by Fintech and Digital Commerce Platforms

Greip is one of the best BIN Lookup API, well-known and trusted by fintech and digital commerce platforms as they offer reliable and correct results.

Read how we have helped some businesses

Frequently Asked Questions

What is a BIN Lookup Used For?

Bank Identification Number (BIN) lookup is a tool that uses the first 6-8 digits of your payment card to gather information important for the identification of the issuing institution, country, and type of card.

Are Free BIN Lookup Tools Accurate?

Free BIN lookup tools can be accurate sometimes, but this depends largely on how frequently it is updated, the source of data, and the size of the business. However, paid BIN lookup tools are more accurate as they use an API and perform their activities in real time.

What is the Difference Between a BIN checker and a BIN Database?

A BIN database is a storage containing information about several bank identification numbers (BINs), while a BIN checker is a tool that uses the information contained in the BIN database to validate BINs and provide insights that support fraud detection.

Can BIN Lookup Tools Detect Fraud?

Bank Identification Number (BIN) lookup tools contribute to fraud detection by gathering important information about a card used for payment, which is then used by businesses to identify fraudulent transactions.

Conclusion

BIN validation tools are very effective for fraud detection, and are available in free and paid versions. While free BIN lookup tools may seem appealing due to cost, they often come with limitations in terms of reliability, support, and outdated databases but paid BIN APIs like Greip's Card Issue Verification tool offer better features like up-to-date databases, real time fraud signals and developer-ready integration which makes it easier for fraud analysts, developers building payment intelligent tools and business owners to detect and prevent frauds.

Protect your business from the ever-evolving tactics of fraudsters. Get Greip's BIN Lookup API today

References

Why Businesses Need BIN Lookup For Safer Cross-border Payment

Bank Identification Number

What is Fraud Risk Scoring for E-commerce Businesses

Understanding the Impact of Credit Card Fraud on Businesses and Best Prevention Strategies

Using BIN, BIC, and IBAN Checks to Detect Fraudulent Transactions