EMV Tokenization for Digital Commerce
While online commerce continues his unstoppable growth, Card on File payments make their mark by enabling great use cases like one-click orders, subscriptions, digital wallet transactions or payments in several installments.
However, false declines are still extremely high on Card Not Present compared to Card Present. A MasterCard study shows that only 80% of transactions are approved in online commerce, compared to 96% for purchases performed in physical stores. This low acceptance rate has mainly two reasons:
Cards get expired, lost, or stolen, making card details stored on file outdated
Cards payment are frequently, most of the time erroneously, considered fraudulent by issuers, leading to a decline.
Not only this represents a direct loss of revenue as the outstanding purchase cannot be completed, but it also results in a bad user experience leading to customer attrition (unhappy customers tend to go to competition) and loss of subsequent revenues.
To solve these challenges, Payment Networks, have created a standard to secure and enhance Card on File called EMV Tokenization. An EMV token – an alias which has the same format as a PAN- is mapped to and used instead of the physical card number. This token never gets outdated, which guarantees it can always be used for payments, and provides several layers of security, giving more confidence to the issuer to approve transactions rather than wrongly turning them down.
Thales TSH Merchant Gateway (TMG) can help online Retailers, Digital Wallets and Service Providers:
- Ensure end-users' payment details are always up-to-date
- Eliminate false transaction declines
- Reduce card skimming fraud
Single API integration to support EMV Tokenization for International and Top Domestic networks
Best time-to-market by halving EMV Tokenization implementation timeframe and effort vs. direct scheme integration
Investment cut by a third while enabling multiple added-value and future use cases
Unlimited scalability, Merchant onboarding capacity and ultra-low latency thanks to cloud-native platform