Tokenization technology replaces sensitive payment details such as primary account number (PAN) with a unique digital token. This approach significantly increases payment security and promotes secure online transactions.
The main benefits of tokenization include reducing fraud risks, increasing payment authorization, and providing seamless customer interaction for recurring and one-time payments.
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 enhances security by protecting customer payment information, building trust, and reducing fraud. It enhances convenience by simplifying card provisioning and lifecycle management, reducing manual work and false declines. It also ensures control with secure credentials at each payment stage, allowing quicker and smoother checkouts.
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
| Type | Description |
|---|---|
| vts | Tokenization service provided by Visa Token Service. |
| mdes | Tokenization service is provided by the Mastercard Digital Enablement Service. |
| scof | Secure Card on File tokenization by Mastercard. |
Tokenization status
| Status | 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.