Visa to Enable Use of Tokens

Posted March 11, 2015

Payment Card Network’s “Visa Checkout” Online Payment Service to Deploy Token Technology

Visa is enabling the use of tokens, which are mathematical codes that transform sensitive consumer information such as 16-digit credit card numbers into encrypted codes that are useless to criminals. More than 110 merchants around the world will be able to use Visa Checkout starting in April.

Thad Rueter on internetretailer.com quotes Visa as saying that “In 2015… some of the largest e-commerce merchants [will] deploy Visa Token Service, using tokens to process consumer e-commerce purchases rather than actual payment account information.” The company says retailers taking part in Visa Checkout will include Staples, the Gap, Neiman Marcus and Gymboree.

In his article, Rueter goes on to describe what Visa Checkout means to increasing online security for merchants and consumers. The following has been excerpted from Reuter’s piece and edited to fit our format. You may find his complete article by clicking on this link.

How it works for the consumer

Visa Checkout enables consumers who enroll to have their Visa debit or credit card data stored by the service. Registered shoppers then need only provide user names and passwords to make online payments with participating retailers. The shopper remains on the e-commerce site while signing in.

Object is to keep consumers from abandoning transactions

Retailers have objected to other authentication services that take a shopper off the site to fill in identifying information. One main point of the service, Visa has said, is to keep consumers from abandoning transactions when faced with multiple screens for payment.

Visa to expand and support mCommerce

[Later] this year, financial institutions in Asia Pacific, Latin America and the U.S. will deploy Visa Token Service in support of mobile payment applications and services.

Retailers don’t need to replace equipment or software

“The merchant does need to accept Visa Checkout on their web and/or mobile site, but this does not require new software or a large amount of coding on the merchant’s side,” [says a Visa spokesperson]. “They simply receive the information Visa Checkout sends back and process the transaction using the connections to the payment system they already have.  No new equipment is required.”

On the heels of Apple Pay

The expansion of token technology to Visa Checkout comes after last year’s launch of Apple Pay…that also includes token technology. Apple Pay is incorporated into the Apple Passbook mobile wallet, backed by American Express, Visa and MasterCard.

ThreatMetrix

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