Tokenization

As e-commerce continues to grow, tokenization is the technology of choice to improve authorization rates, reduce costs, and keep payment data secure. BlueSnap takes care of tokenization behind-the-scenes, so you don't need to worry about any implementation effort.

Tokenization is the process of replacing sensitive payment data, like the primary account number (PAN) of a debit or credit card, with a unique digital identifier. Tokens are provided by card networks and represent the digital identifer of the card data. Using this token in place of the actual card data during a transaction greatly reduces the risk of that data being compromised. Even if the token is stolen, it's useless to the thief outside the purpose for which it was created.

Network Tokens

Network tokens are substitutes for a debit or credit card primary account number (PAN). Each network token is unique to the merchant, so network tokens cannot be used across different merchants. BlueSnap has integrated with payment networks like Visa and Mastercard for the purpose of tokenizing shoppers' card details. We also maintain those tokens so they remain current, even if the corresponding card data changes. For example, if a cardholder loses their physical card and receives a replacement card with a new PAN, BlueSnap will be notified by the card network to update the token so it continues to work without the cardholder or merchant having to make any updates.

Benefits of Network Tokens

Out-of-the-Box Token Management

BlueSnap has integrated with card networks and will request the network tokens on your behalf, saving you a considerable amount of development and implementation effort. We stay aligned with upcoming changes to network token services, allowing you and your business to concentrate on what matters.

Increased Authorization Rates

A Visa report shows that merchants can experience a 2.1% increase in authorization rates when using tokenization. This applies particularly to network tokenization since the issuing bank is also the entity issuing the network token, resulting in the shopper's network token automatically being trusted.

Increased Conversions and Revenue

Since customer data is always up to date for all the payment cards on file, tokenization helps to prevent declines due to card expiration, loss, or theft. This helps streamline the process of recurring transactions to improve conversion rates and prevent any interruptions in revenue.

Increased Security

Each transaction is protected using a one-time cryptogram, further increasing the authenticity of the transaction, leading to an increase in authorization rates and a decrease in fraud.

Merchant Experience

With network tokenization, tokens are dynamically updated in real-time, solving the problem of expired or canceled cards. Network tokens help ensure your customers' cardholder data is current, maximizing your authorization rates and providing the best possible customer experience.

Shopper Experience

Your shoppers' payment flow and experience remain the same with network tokenization. BlueSnap handles tokenization, so you and your shoppers can take advantage of added security benefits without any extra steps.

BlueSnap Network Tokenization vs. BlueSnap Tokenization

BlueSnap network tokenization differs from BlueSnap’s tokenization solution.

  • BlueSnap Network Tokenization: The card networks provide a token service that creates a network token for a card. BlueSnap stores this network token and uses it in place of the card during the authorization. With network tokenization, your payment flow stays the same and BlueSnap manages the swapping of card details for a network token when necessary.
  • BlueSnap Tokenization (fallback)*: We swap out card details for a vaultedShopperId, which you can then use to make payments. Learn more about how tokenization and vaulted shoppers work with our Hosted Payment Fields solution.

As you can see from the below image, when using BlueSnap’s network tokenization, the PAN is further removed from the payment ecosystem, reducing the risk of bad actors intercepting the sensitive data. This increases trust in the transaction, provides increased authorization rates, and reduces fraud.

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*BlueSnap automatically decides when to use a network token and when to use the underlying PAN.