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.
- 3.2% average observed authorization lift when using tokens.
- 26% fraud reduction (payment volume) for Visa Token transactions compared to PAN based online transactions.