Launching your card program is the right step in the development of any business. Payment cards help to facilitate mutual settlements with suppliers, customers and employees. Thanks to them, budget management is greatly simplified. The main problem is that launching a card program alone is complicated, time-consuming and financially costly. It is much easier to utilize the services of a BIN sponsor and launch your card project in a matter of weeks.
What is BIN sponsorship?
A BIN sponsor is an organization that is a full member of the payment system and has fulfilled all the necessary conditions to obtain BIN numbers and make them available to its clients. BIN-sponsor Wallester is a member of the Visa payment system; BIN-sponsors cooperate with the MasterCard system and other payment services. Thus, BIN-sponsor partners can perform various functions of a financial institution, such as issuing cards, without being direct participants in the payment system of their choice.
BIN-sponsor or launching a card program on your own?
If you want to set up branded card issuing on your own, you will need to do the following:
- hire an entire staff of specialists who can create the software to run the card program;
- gather a package of documents and apply them to the payment system for a BIN number;
- create and configure all the necessary infrastructure;
- obtain licenses to issue payment instruments and comply with all regulatory requirements;
- ensure the security of all transactions and your cardholder data;
- maintain and upgrade the software designed to manage your card program.
Meeting these requirements will take a lot of effort, time and money. Getting a card project up and running with a BIN sponsor is much easier and faster. He takes care of all administrative, legal and technical issues, and the company only has to develop its product and profit from it. It takes 6 to 12 months to launch a card program on your own, sometimes longer depending on how long the payment system considers the application. BIN-sponsor will help to launch the project in just 1-3 months.
What tasks does the BIN sponsor solve?
You first need to get a BIN number to launch your own card program. It is a number that identifies the issuer in the payment system. Thanks to it, the service identifies the company that issued the card during the authorization and processing of card transactions. It can take from several months to six months for companies to independently obtain this number. BIN sponsorship allows you to save time and money and become the owner of a BIN number immediately after signing an agreement with a BIN sponsor.
BIN-sponsor does not just provide BIN numbers but also undertakes several important functions:
- Card issuance. BIN-sponsor provides a platform for issuing cards of any type. These can be virtual or physical cards, credit, debit or prepaid. They can be used to pay for goods and services in retail and online stores, to make transfers and instant transactions;
- Tokenization. Tokenized cards increase the security of payments. They can be added to any of the most popular digital wallets;
- Payment security. BIN sponsors use modern data protection protocols. One of them is 3D Secure – a protocol that implies the use of an additional step of cardholder verification and identification during the transaction;
- Fast payment processing. Payments in any quantity are processed in the shortest possible time, as there is no need to obtain approval from banking organizations;
- KYC/AML compliance. BIN-sponsor helps identify individuals and legal entities per international anti-money laundering regulations. It allows new users of the card program to be safely enrolled;
- Fraud monitoring: BIN-sponsor monitors all transactions and identifies and prevents fraudulent card transactions. It helps to reduce the company’s financial losses significantly.
The BIN sponsor is responsible for developing, maintaining and upgrading the software to issue cards and manage the card program. Solid companies offer White Label solutions that allow issuing cards with individual designs rather than standard payment means.
BIN sponsorship is a smart way of business development, as it allows companies of any size and from any sphere of activity to launch their card program with minimal resources.