Scheme tokenisation of card payments in e-commerce
If you, as a merchant, are already “tokenising" card data in your web shop, this means that the credit or debit card number (PAN) of your customers is encrypted, stored and replaced by a token during payment. This is nothing new and has been used for several years as an effective way of protecting sensitive card data. Until now, Saferpay, as your payment service provider, has stored the card data and returned it to you using an alias, a pseudonymised value (Secure Card Data).
Scheme tokenisation is all the rage – a technology developed by Visa, Mastercard, American Express, etc. that sets a new global standard. It also considerably simplifies the life cycle management of cards, for example when a card has expired or needs to be renewed.
With scheme tokenisation, the card company assumes the role of the token service, looks after the management of the token system, and stores the card data for later or recurring debiting. Saferpay itself no longer stores any data, but instead receives a token from the respective card brand (e.g. Visa or Mastercard), which is only valid for you and your payment service provider (Saferpay). This significantly reduces the risk of fraudulent transactions and data theft or data breaches. In addition, the token is not linked to a specific card, but to the card account. This enables a smoother and completely secure payment process.
Read our blog to find out how you can benefit from the new scheme token technology.
How exactly does scheme tokenisation work with Saferpay?
In simple terms: When a customer makes a purchase in your shop for the first time and enters their card data on the payment page during checkout, this data is forwarded to your PSP (Saferpay) – in encrypted form, of course – and can be saved for recurring payments. Saferpay forwards the data to the respective card company (Card Scheme, e.g. Visa or Mastercard) and requests a secure scheme token that cannot be stolen or spied on. Saferpay then sends you, the merchant, an alias ID that references this token. The card number is now encrypted and no longer visible. If you then initiate a transaction via the alias ID, Saferpay will send the token to the card processor (Acquiring Bank, e.g. Worldline). This processor forwards the scheme token to the card company and from there to the card Issuing Bank. If the token is intercepted somewhere along the line, it is of no value to fraudsters.
What is the life cycle of a card and why is it so important?
The life cycle of a debit or credit card includes card management from issue to cancellation. In this context, we speak of life cycle management, which has an impact on fraud prevention and compliance.
And what does this have to do with scheme tokenisation?
The scheme token references a card account at the card Issuing Bank. If the card is replaced or expires, the token will continue to work. As a result, customers experience fewer rejected transactions and you increase your conversion rate. On top of that, you no longer have to worry about updating the cards, because the payment information is now updated automatically and this facilitates a smooth payment process: once saved, transactions can always be initiated without any problems in the future.
How you benefit with scheme tokenisation
If you are a Worldline customer, are already using our Saferpay payment system for your web shop, and tokenise cards (via Secure Card Data), you will automatically benefit from the new technology and the advantages of scheme tokenisation:
- Greater security for you and your customers
- Higher conversion rates thanks to scheme tokens
- Cost savings due to lower card fees
- Cards no longer need to be updated
- Optimised token management in online banking for the cardholder
Still not a Worldline Saferpay customer?
No problem. We will be happy to advise you on the right solution for your checkout.
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