The fraud rate for Card Not Present (CNP) payments is up to 10 times higher than for Card Present (CP) payments. Scheme tokenization raises the security level of online payments and with it, contributes to a better conversion rate.
Network tokenization through the schemes connects merchants with issuing banks. This results in various advantages compared to PSP proprietary tokens. Instead of storing sensitive card data like card numbers (PANs) in their Card-on-File (CoF) systems, PSPs can store scheme tokens and significantly reduce liability. Scheme tokens are processed with EMV transaction cryptograms, which increases the security of payment transactions to a level similar to the security of a card present transaction. In addition, this increases approved transactions based on risk decisions.
Netcetera’s ToPay eCom Token Connector offers merchants and PSPs all the advantages of scheme tokenization with a single, API-based integration. Our platform is scheme agnostic: it provides access to the tokenization services of multiple schemes without the need for separate integrations and certifications with each platform. This speeds up time-to-market, and drastically reduces complexity and maintenance efforts.
To sum it up, scheme tokenization leads to enhanced consumer convenience and usability, reduced abandonments and increased conversion rates.