The Complete Handbook on BIN Sponsorship

5 min read

BIN sponsorships have continued to gain popularity in the payments sector and are quickly becoming the preferred payment method for FinTechs. They provide businesses with a quick alternative to access major card schemes and enable them to construct scalable payment products while maintaining flexibility.

This article aims to give you more clarity about BIN sponsorship and assist you in understanding its purpose, the various paths that can be pursued within it, and the potential advantages it could offer your business.   

BIN Sponsorship: What Is It?

A BIN sponsorship is a single, compliant link that enables the processing of transactions and the settlement of cardholder funds between an organisation and a card scheme network. Businesses can conduct numerous financial institution operations through a BIN sponsor, like Transact Payments, without needing to get banking licences.

We’ve broken down the term BIN sponsorship:

BIN – is an abbreviation for Banking Identification Number, which is the first four to six digits of the lengthy card number found on the front of a credit card. In order to guarantee a seamless client experience, these numbers are used to identify the financial institution that issued the card and to match transactions to the issuer.

Sponsorship – is used to describe the partnership between a client and a sponsor (the person who issues the BIN). The issuer must be a direct scheme member of the two main card schemes (Mastercard and Visa) in order to sponsor a BIN. Banking institutions can sponsor their clients to use account ranges and BINs that have been approved by the scheme as members.

When it comes to issuing cards through a BIN sponsorship, businesses must follow the rules and laws of the country in which they want to issue cards, and the BIN sponsor needs to be licenced to issue cards in those nations. Because of these requirements, there aren’t any global issuers of BIN sponsorships at the moment, despite what some companies may say. We at Transact Payments offer active BIN and Sub-BIN ranges in 17 currencies and 25 European countries. To obtain a payment card, other parties are needed, and as a BIN sponsor, we have the connections to ensure all relevant parties are involved.

When Are BIN Sponsorships Used?

A business may look to obtain a BIN sponsorship in a number of scenarios. Among these circumstances are those in which a company wishes to add:

  • Corporate expense cards
  • General spend cards
  • Gift cards
  • Money transfer cards
  • Travel and foreign exchange cards
  • Payroll and payroll-plus cards
  • Affiliate commission cards

These can be issued as physical, virtual, prepaid, debit, credit, or tokenized cards, depending on the needs of the business and the intended use.

What Routes Can Be Taken During BIN Sponsorship?

There are several options available when it comes to BIN sponsorship, such as a service provider route, settlement-only route, and a dedicated BIN sponsorship route.

What Are the Benefits of BIN Sponsorships?

Through BIN Sponsorships, companies can use major card schemes without going through the often difficult and time-consuming process of obtaining their own licences. Instead, by utilising the licences of their sponsors, BIN sponsorships enable companies to swiftly access payment and credit card schemes. 

It is important to work with a BIN sponsor because they can advise a business on the rules and regulations surrounding the issuance of credit cards in those countries and make sure that their programme complies with all applicable laws and regulations.

In order to assist you in delivering an engaging programme, BIN Sponsors can also aid firms with the BIN establishment process and provide continuing assistance and maintenance.

Why Choose Transact Payments? 

You are in safe hands with the Transact Payments team, who have extensive knowledge of both regulatory and scheme requirements. 

Transact Payments are principal members of Mastercard and Visa, as well as authorised e-money institutions in the UK and Europe. As a BIN sponsor, we are able to share our licences with our clients, sparing them the need to get their own banking licences in order to conduct financial institution operations.

We offer innovative, flexible, and secure card and payment solutions. Our BIN sponsorship service is completely integrated with a number of top processors, and we can integrate it with any company’s processing system to provide for fast, flexible, and affordable programme setup along with dependable ongoing maintenance.

Our solutions are used by regulated financial institutions, financial services companies, and marketing organizations.  

At Transact Payments, we actively strive to improve industry standards and are open and honest about all we do. We collaborate with our clients to determine the best course of action when it comes to BIN sponsorship, and we will be honest if we don’t think it will benefit your company. Speak with one of our specialists today to learn more about our BIN Sponsorship programme.

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