Merchants may be familiar with tokenization, which replaces payment card data with a “token” that retains many of the required properties of the original data but removes the elements that carry risk. Tokens allow safer long-term storage of transaction data that can be used to support back office operations and analyze customer behavior, reducing data security risks and PCI compliance obligations. A new type of token called a “multi-pay token” expands the usefulness of tokenization in financial transactions. Multi-pay tokens address the primary security risk and PCI burden inherent in a card-not-present (CNP) environment—the need to store customers’ preferred payment information for repeat transactions—making them an ideal solution for eCommerce merchants.
First Data’s new white paper explores this technology in detail and discusses use-cases for multi-pay tokens in both CNP and card-present situations.