Card schemes offer tokenization services that replace sensitive account details, such as the Primary Account Number (PAN), with a unique digital identifier known as a network token. Visa’s tokenization service is referred to as the Visa Token Service (VTS), while Mastercard provides the Mastercard Digital Enablement Service (MDES).
Currently, Solidgate provides access to VTS/MDES solutions for merchants, and they do not need extra effort to integrate with international payment systems tokenization services. The network token is unique for each customer-merchant pairing, offering the following benefits:
- Network tokens are managed and updated automatically by card networks, minimizing customer friction and reducing
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Understand why the payment is declined and how you can resolve it. declines . - Network token payment information can be updated quickly and automatically, eliminating the need for a cardholder to do it in the event of expiration, reissue, or compromise.
- Network token payments have higher authorization rates than those without.
- Each transaction is fortified with a one-time cryptogram, ensuring better payment security.
Solidgate acquires a card scheme network token during the initial charge processing, securely storing it for subsequent payment attempts. This network token seamlessly replaces card details during authorization within regular payment flows. For Solidgate merchants using VTS/MDES services, subscription and recurring payments are automatically processed with the services tokens through terminals belonging to the same websites and mobile apps where the first charge operations occurred.
When a network token is created or updated, merchants receive a webhook. This allows them to automatically update their systems with accurate and up-to-date information about the network token statuses.
| INACTIVE | The network token is created but not activated. |
| ACTIVE | The network token is activated and can be used for transaction processing. |
| SUSPENDED | The network token is temporarily halted and cannot be used for transactions. |
| DEACTIVATED | The MDES network token is permanently deactivated and must not be used for transactions. |
| DELETED | The VTS network token is permanently deleted and must not be used for transactions. |
The network token status can change depending on the circumstances of the payment card. If a cardholder reports an issue with their payment card or if the issuer suspects fraudulent activity, the network token status may be temporarily changed to SUSPENDED. This status allows for the reactivation of the network token once the issue is resolved. Through notifications, merchants receive updates regarding changes from SUSPENDED to ACTIVE or DELETED status. However, if the cardholder reports a lost payment card or closes their bank account, the network tokens will be updated to a permanent DEACTIVATED or DELETED status. This permanent status prevents further use of the network tokens.
Tokenization of card data and the real-time monitoring of network token status events are crucial components in preserving the integrity and security of payment processing.