BIN sponsorship refers to a type of arrangement in the payment card industry where a financial institution or a payment processor provides a unique Bank Identification Number (BIN) to a third-party payment service provider. This allows the payment service provider to issue payment cards under their own brand using the BIN provided by the sponsor.
The BIN is the first six digits of a payment card number that identifies the issuing bank or financial institution. By using a sponsor’s BIN, the payment service provider can avoid the lengthy and expensive process of obtaining their own BIN from card networks such as Visa, Mastercard, or American Express.
BIN sponsorship enables payment service providers to offer their own payment solutions to customers, including physical cards, virtual cards, and mobile payments. The sponsor is responsible for providing the necessary infrastructure, compliance, and support services for the payment service provider to operate under their BIN.
In exchange for the sponsorship, the payment service provider typically pays the sponsor a fee, which may include a percentage of the transaction volume or a fixed fee per card issued. BIN sponsorship can be a cost-effective way for payment service providers to enter the market and offer their own payment solutions without the need for significant upfront investment.
Adam Tracy is an attorney and entrepreneur who specializes in blockchain technology, digital currencies, and other emerging technologies. He is the founder of Blockrunner, LLC a strategy and compliance consultancy to the blockchain and cryptocurrency industries.
Adam has been involved in the blockchain and cryptocurrency space since 2013, and he has worked with a wide range of clients, including startups, established businesses, and investors. He has advised clients on legal and regulatory issues related to initial coin offerings (ICOs), cryptocurrency exchanges, domestic and offshore licensing, smart contracts, and other blockchain applications.
In addition to his consultancy, Adam is also an active entrepreneur and investor in the blockchain and cryptocurrency space. He is also a frequent speaker and writer on blockchain and cryptocurrency topics. He has been featured in a wide range of publications, including Forbes, CoinDesk, and Bitcoin Magazine.
Find Adam: https://linktr.ee/adamtracy