Cards Network Tokenization

Overview

In a traditional way, Ezypay needs to provide the PAN (Primary Account Number) of credit card to card provider during a transaction to authorize it. If customer replaced the card due to expired or lost card, then we are relying on them to provide the new PAN data for future transaction. This would reduce the collection rate as most customer will forget to do so.

Network Tokenisation works as swapping the PAN data with the card scheme (the network) token. We send card provider a PAN and a TRID (Token Requestor ID, similar to a Merchant ID or MID), and they give us back a network token. That token is unique to both the card, and the Merchant, which makes the token really secure. There’s a security benefit to Network Tokenisation, particularly for companies who want to avoid the hassle of storing sensitive PAN data themselves, just like we take care of that complexity for our partners by collecting and storing card data and just providing them with a token.

When it is time to process a transaction, we pass the token to card provider, instead of the PAN. They then look up the corresponding PAN, and send the real payment details, along with the token, to the issuer for authorisation. The network token remains the same if the credit card is replaced for whatever reason. This remove the reliance from customer to provide the new PAN data before a transaction.

Benefits

The ultimate benefit is it improves collection rate of merchants. Network tokenization help to improve collection for below scenario:

• When expired card is replaced

• Misplaced or reported lost/stolen card will still be allowed to transact if it is replaced (similar to an expired card scenario).

• Network tokenisation helps increase the authorisation rate. The token is unique to the card and merchant, so there is a lower risk associated, hence less declines due to fraud.

How to enable?

There is nothing an integrator will need to do to enable network tokenisation into their payment capabilities. This is automatically enabled, as long as a payment is initiated via a Visa / MasterCard transaction and is under the supported region. Ezypay is looking into expending this capabilities to more regions in the near future.