Network Tokens: Enhancing Merchant Payment Strategies

Network Tokens: Enhancing Merchant Payment Strategies

Merchants are always looking to improve the customer experiences at checkout, reduce credit card fraud, and stay ahead of PCI DSS and other regulatory requirements. Tokenization—a security method that replaces sensitive card information with unique tokens—has emerged as the standard for securing payment data, but are all tokens created equal?

The latest innovations in tokenization not only safeguard payment data, but also reduce PCI scope, increase authorization rates, reduce false declines, and more. Specifically, these innovations include universal tokenization, an IXOPAY technology, and network tokenization created by EMVCo (run by the major card brands). These two tokenization models improve upon traditional tokenization approaches by offering centralized management and portability to realize the benefits noted above. 

Network tokenization, a new standardized token technology, is gaining popularity due to its ability to improve authorization rates by up to 4% or more and reduce fraud by up to 28%. However, while adoption rates are growing for network tokens, utilizing both a network token alongside a universal token on the IXOPAY platform remains a best practice to ensure transaction success. 

Using universal and network tokenization together can create a force multiplier effect, strengthening their individual benefits. In this paper, we explore both of these technologies, which, when combined, optimize payment infrastructure. 

Read this white paper to learn: 

• What is universal versus network tokenization
• What are the benefits of network tokens
• Why pairing universal and network tokens is the best practice for transaction success

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