Payment Tokenization
Merchants who must perform certain customer billing functions, such as subscriptions, delayed payments, refunds, or credits, require credit card information. These billing functions require the merchant to store sensitive credit card information so that it can be accessible for future use. Unfortunately, this also opens the risk of stored credit card data to be stolen. In addition, efforts required to protect stored card data can be expensive.
Payway provides tokenization to both protect cardholder data and speed up recurring payments. It works by replacing primary account number (PAN) data with a token — a unique value only recognizable to us. We protect the token with superior vault technology and store it in one of two data centers hosted by Armor, a cloud-based facility in compliance with PCI requirements.
Network Tokens
Although they’re often used interchangeably, network tokens and payment tokens have distinct functions. Network tokens are issued by card networks and are broadly accepted throughout the entire payment ecosystem. In contrast, payment tokens refer to any tokens used in digital transactions. This means that while network tokens fall under the category of payment tokens, not all payment tokens qualify as network token.
Several key features define network tokens:
- They are created by card networks, not by merchants or payment processors.
- Each token is unique and linked to a specific customer and account number, making it useless if intercepted.
- Tokens are generated when customers start a transaction.
- Network tokens can be used across channels and devices, providing more versatility than other payment tokenization
Related Content:
Blog: How Tokenization Benefits Subscription-Based Businesses
Blog: Network Tokenization 101
Blog: Three Technologies to Look for in a Secure Payment Solution