All you need to know about Tokenization - Visa

All you need to know about

Tokenization

Visa Token Service, a new security technology from

Visa, replaces sensitive account information, such as

the 16-digit account number, with a unique digital

identi?er called a token. The token allows payments to

be processed without exposing actual account details

that could potentially be compromised.

How Visa Token Service Works

The Visa Token Service enables digital payment service providers and ?nancial institutions to offer their

customers a safe way to shop online and with mobile devices. Here��s how a token is initiated.

1

Step 1

Step 2

Step 3

Consumer enrolls their Visa account with a

digital payment service (such as an online

retailer or mobile wallet) by entering their

primary account number (PAN), security code

and other payment account information.

The digital payment service provider

requests a payment token from Visa for

the enrolled account.

Visa shares the token

request with the

account issuer (such as

the consumer��s bank).

2

3

VisaNet

00

40

34

12

00

56

0

R

DE

PAN

10

90

Enter payment details below:

6

1

1/

?

PAN

4000 1234 5600 9010

4000 1234 5600 9010

01/16

ME

01/16

CARDHOLDER NAME

NA

CARDHOLDER NAME

OL

H

RD

Issuer

CA

61,802,000,000

Token Requestor

Consumer

Enter payment

details below:

PAN

4000 1234 5600 9010

01/16

CARDHOLDER NAME

Token Vault

5

4

Step 5

Step 4

Visa shares the token with the token requestor

for online and mobile (NFC) payment use. A

payment token can be limited to a speci?c mobile

device, eCommerce merchant or number of

purchases (say, a limit of ?ve) before expiring.

With the account issuer��s

approval, Visa replaces

the consumer��s PAN with

a unique digital identi?er

(the token).

How Tokens Are Used

As consumers increasingly shop with connected devices, the need for a seamless and secure digital

payment experience becomes crucial. Without exposing the consumer��s account to fraud, tokenization

enables frictionless, card-free payments in digital commerce environments.

1 PAIR JEANS

$ 27.00

Checkout

946

936

Checkout

2 PIZZAS

$20.00

Oranges

Apples

Mangos

Check

out

4000

CARDHOL

1234

DER

5600

01/16

NAME

9010

Pizza Delivery

Online

In-Store

In-App

Making eCommerce purchases is

becoming commonplace. Tokenization

provides online retailers with an innovative

and secure way of handling payments.

Tokenization provides a secure way

for consumers to make in-store

payments by simply waving their

device near the payment terminal.

The ability to pay with Visa is increasingly

embedded in innovative mobile

applications that make it even easier to

pay for your transaction on the go.

PAY NOW

1 PAIR JEANS

$ 27.00

4000 1234 5600 9010

01/16

CARDHOLDER NAME

1

PROCEED TO

CHECKOUT

1

2 PIZZAS

$20.00

Payment initiated

The consumer initiates a payment

online, in-store or in-app.

2

Merchant sends token to acquirer

Depending on the commerce environment, the digital

payment service provider (e-wallet, eCommerce

merchant or app) passes the token to the acquirer

as part of an authorization request.

Acquirer

3

Acquirer routes the token

The acquirer receives the token and routes it to

Visa��s network to begin processing the transaction.

6

VisaNet

Transaction completed

The token and payment

authorization are routed back to

the merchant's bank, the acquirer.

61,802,000,000

4

Visa sends token

to card issuer

5

Issuer returns token and authorization

The issuer accepts or declines the transaction and sends

its response back to Visa.

Visa sends the token, along with the

payment card details, to the issuer

for authorization.

Issuer

For more information visit: digitalsolutions

Source: Visa

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