All you need to know about Tokenization

Visa Token Service, a new security technology from Visa, replaces sensitive account information, such as the 16-digit account number with a unique digital identifier called a token. The token allows payments to be processed without exposing actual account details that could potentially be compromised.

How Visa Token Service Works

The Visa Token Service enables digital payment service providers and financial institutions to offer their customers a safe way to shop online and with mobile devices. Here's how a token is initiated:

Step 1

Construct a receipt that Visa account with a digital payment service book as a roller receipt containing online information: the primary account number (PAN), security code, and other payment account details.

Step 2

The payment service provider requests a payment token from Visa for the required payment.

Step 3

Inside the token request, the payment token is submitted to the consumer's bank.

Step 4

With the user's information, the consumer's PAN is displayed alongside the payment token.

How Tokens Are Used

As consumers increasingly shop with connected devices, the need for a seamless and secure digital payment experience becomes crucial. Authorization ensures fraud-free, card-free payments in digital commerce environments.

Online

Making purchases is becoming commonplace. Tokenization provides online retailers with an informative and secure way of handling payments.

In-Store

Tokenization provides a secure way for consumers to make in-store payments by simply entering their device near the payment terminal.

In-App

The ability to pay with Visa is increasingly being embedded in innovative mobile applications that simplify transactions on the go.

1. Payment initiated
   Visa account is not valid for payment orders in In-store or in-app.

2. Merchant sends token to acquirer
   The merchant sends the token to the acquirer for payment service provided in mobile commerce applications as part of an authentication request.

3. Acquirer routes the token
   The acquirer network routes the token to the Visa network to begin processing the transaction.

4. Visa sends token to card issuer
   Visa sends the token to the card issuer, along with the payment card details, for authorization.

5. Issuer returns token and authorization
   The issuer accepts or declines the transaction and sends a response back to Visa.

6. Transaction completed
   The transaction is completed, and authorization is received back to the necessary bank.

For more information visit: www.visa.com/digitalsolutions
Source: Visa