2 is New: What Restaurants Need to Know About the Mastercard 2-Series BIN Expansion

    2 is New: What Restaurants Need to Know About the Mastercard 2-Series BIN Expansion

    mastercardThe payments sphere has changed dramatically in the past few decades, so much so that it sometimes feels as if it is an entirely new landscape. With unattended payment solutions, mobile wallets, and EMV chip cards, gone are the days of carrying cash as a main form of payment. One of the biggest changes to the payments industry is happening at this very moment – The global payments giant, Mastercard, is in the process of expanding to its new 2-series card account numbers, from 222100 to 272099. 

    The original date for merchant compliance was January of this year, but Mastercard extended the deadline by six months to June 30th. With almost a month since the June deadline passed, Mastercard has begun testing terminals for compliance. If a merchant has been caught, their acquirers could be subject to fines of up to $25,000 per month. Restaurant owners and other business owners need to have point-of-sale systems that support this new range of Mastercard numbers. If an establishment does not have a POS system that supports the new BIN range, Mastercard or the processor themselves may issue penalties. Even one penalty could destroy a small restaurant operation. Though the deadline has passed, it is not too late to act now.

    Why is Mastercard Adding Numbers?

    Mastercard is essentially doubling the number of cards to address the rapid growth in digital commerce. Decades ago, thousands of cards were circulating around, today that number is closer to about nine billion. In an interview with Andrea Gilam, the Mastercard SVP for Franchise Development, PYMNTS.com noted “Gilman says that this move is critical since the use of existing BINs has accelerated to the point of activation that nobody would have envisioned several years ago. Gilman pointed out that just a few decades ago, there were 38,000 cards in the field; today there are roughly 9 billion. As more digital end points involving commerce emerge, she emphasized that the ability to issue more cardholder accounts and support new types of digital credentialing via tokenization becomes paramount. Adding their new BIN range is one important step in giving issuers those tools and that flexibility.”

    What Does This Have To Do With Restaurant Payment Processing?

    Restaurant owners more than likely did not get into the hospitality business because they love the payment processing industry. Although restaurant owners have a lot of other aspects of their business to worry about, it is impossible to get by without a deeper understanding of the payments industry. Every time a customer makes a purchase at a restaurant, they are entrusting that establishment with their credit cards and personal information. Just as a customer expects to have the best dining experience, they also expect to have their sensitive data handled with care. If the POS system set in place does not meet essential security requirements, the restaurant-customer relationship becomes compromised, hindering the reputation. It is important to have a system that offers security measures such as P2P encryption, tokenization, and EMV chip card technology.

    What is the Best Way for Merchants to Prepare Their POS System?

    The keys to having the best POS solution is flexibility and preparedness. Mastercard is not the first payment change to affect the payments industry and it certainly will not be the last. The EMV Liability Shift had a rough start due to slow adoption. Merchants and customers alike suffered from that rough start. Even merchants who had EMV ready terminals suffered from issues with waiting for a qualified technician to certify their equipment, which caused massive headaches for consumers who were unsure if they could use their chip cards or not. EMV provides the perfect example as to why preparedness is crucial. The future of the restaurant and payments industries are unpredictable, but one aspect of them are certain: business owners are the ones that help to shape it.

    If a business owner is unsure about their POS systems compatibility with the new Mastercard BIN range, here are two things they can do:

    • Contact their processor immediately.
    • Contact Mastercard via email at: This email address is being protected from spambots. You need JavaScript enabled to view it. to request a 2-series test card. More information can be found here.

    sterling paymentsAbout the Author:
    Nicole Bryan is the digital content writer for Sterling Payment Technologies, a payment processing company based in Tampa, Florida. Sterling is a payment processor that offers solutions that help grow their customers’ businesses more profitably and efficiently.

     

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