With the growth of credit cards in e-commerce transactions card networks, such as Visa and Mastercard, now offer Network Tokenization (NT) services that replace raw card numbers (FPAN) with merchant-specific tokens. While network tokens follow a common EMV Payment Token guideline, each of the networks work with their partnering banks to issue network tokens and accept tokens when acquiring payments. Like regular credit card numbers, these Network Tokens (also called DPAN) are 16 digit values, but offer a distinct range of benefits for the merchant and consumers:
- Higher Authorization rates
- Reduced fraud
- An improved customer experience through proactive updates from the issuing banks including card art, expiration dates, and last 4.
According to Visa, 69% of U.S. consumers choose to store a card on file (COF) or have recurring billing set up with their most trusted and frequented merchants. Increasingly, these merchants rely on tokenization to enhance security and make their customers’ digital transactions less susceptible to fraud. Visa has released the following success metrics in their Visa Token Service June 2020 fact sheet:
- 3.2% average observed authorization lift when using tokens.
- 26% fraud reduction (payment volume) for Visa Token transactions compared to PAN based online transactions.
Access to network tokens and network token transactions is part of the Spreedly Revenue Optimization package. It can be enabled selectively per environment, and is currently free to Spreedly customers during the Beta period. To begin taking advantage of network tokens, connect with your Spreedly Customer Contact and discuss enabling Revenue Optimization on your Spreedly account.
If you're interested in learning more, check out our Network Tokenization guide.