EMV card-on-file payment tokenization is set to both reduce online fraud and deliver a range of benefits to merchants but implementation will not be straightforward, Rambus explains in a new paper that sets out the advantages of using a token gateway to simplify the integration and management process.
Card-on-file payment tokenization removes the need for merchants to store actual card numbers by replacing them with tokens that can be restricted to a specific device, merchant, transaction type or domain. This offers the potential to both reduce card-not-present fraud and move further towards a frictionless online purchasing experience.
But each payment scheme has its own requirements, specifications and interfaces, ‘5 Reasons Why Ecommerce Sites Need a Token Gateway’ explains, and those specifications are also updated often, requiring merchants to constantly adjust their systems to stay connected to the schemes.
A token gateway enables merchants to bypass these integration challenges, however, as it provides a single software interface to multiple global and local payment schemes and is always up-to-date with the latest requirements.
The paper describes how a token gateway works and sets out its benefits in terms of reducing complexity, increasing security, lowering costs, shortening time to market and enhancing the consumer experience.