Tokenization replaces sensitive payment details such as the Primary Account Number (PAN) with a unique digital token. This approach helps increase security and improve payment authorization for recurring and one-time transactions. Key benefits:
- Security: Protects customer payment data and reduces fraud exposure.
- Convenience: Simplifies card provisioning and lifecycle management.
- Control: Maintains secure credentials at every payment stage for quicker checkout.
How tokenization works
- Collection of payment details
Customers provide payment details during checkout. - Secure data transfer
Solidgate securely transfers payment details directly to its vault. - Token creation
Solidgate generates a secure token to replace sensitive data and returns it for storage. - Future transactions
Merchants use the stored token for future payments, ensuring data security without handling sensitive information.
Tokenization supports key use cases, including Card on File, which allows merchants to store customer payment data for recurring transactions securely.
It also streamlines one-time payments, allowing returning customers to use stored tokens for a seamless and efficient checkout experience.
Tokenization type
| Value | Description |
|---|---|
| vts | Tokenization service provided by Visa Token Service (VTS). |
| mdes | Tokenization service is provided by the Mastercard Digital Enablement Service (MDES). |
| scof | Secure Card on File (SCOF) tokenization by Mastercard. |
Tokenization status
| Value | Description |
|---|---|
| INACTIVE | Network token is created but not activated. |
| ACTIVE | Network token is activated and can be used for transaction processing. |
| SUSPENDED | Network token is temporarily halted and cannot be used for transactions. |
| DEACTIVATED | MDES/SCOF network token is permanently deactivated and must not be used for transactions. |
| DELETED | VTS network token is permanently deleted and must not be used for transactions. |
Network token status may change based on
Guide
Transaction declines arise from factors like card limits, insufficient funds, or fraud concerns, often necessitating bank contact.
card issues
or
Guide
These errors indicate transactions flagged for potential fraud due to blacklisted cards, stolen cards, or triggered antifraud rules.
suspected fraud
. Tokens can be temporarily
SUSPENDED
and reactivated once resolved, with updates sent to merchants. If a card is lost or an account closed, tokens are permanently
DEACTIVATED
or
DELETED
, preventing further use.
Card data tokenization and the real-time monitoring of network token status
Guide
Receive notifications when network token created or network token updated.
events
are crucial components in preserving the integrity and security of payment processing.
Tokenization insights
Mastercard has published deadlines for switching all European e-commerce transactions to network tokens:
| October 2026 | April 2028 | April 2030 |
|---|---|---|
|
All Mastercard Credential on File (COF) transactions must use network tokens*. This applies to stored transactions (for example, using a Vault).
|
All Mastercard guest checkout transactions must use network tokens. This applies to every Mastercard transaction, regardless of whether the cardholder’s details are stored for future use.
|
All Mastercard e-commerce transactions in Europe**. It must be processed with network tokens.
|
|
*Excludes scenarios where the issuer declines the network token transaction, the token is unavailable, or an attempt to tokenize is unsuccessful. It also excludes card transactions issued in Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkey, Turkmenistan, Ukraine, and Uzbekistan. **Excludes transactions with cards issued in the same set of countries above. |
||
Solidgate will seamlessly handle all tokenization requirements and Mastercard’s deadlines, including COF transactions, ensuring compliance without additional steps on your side.