New Visa Basic Tokenization program allows the use of “tokens” in electronic commerce and card-on-file transactions in more than 40 markets and territories.
Visa announced today that it is helping businesses in 41 countries and territories in Latin America and the Caribbean to optimize security, combat fraud and eliminate friction in the payment process with tokenization technology. The Visa Token Service now offers a new Basic Tokenization service on behalf of the
issuers, which will provide tokens directly to merchants in the region, regardless of the tokenization or participation status of the issuers, thus closing the cycle of tokenized transactions.
“Visa understands that for digital commerce to thrive in Latin America and the Caribbean, consumers need to have complete confidence in the security of their transactions,” said Ralph Koker, vice president of Digital Solutions for Visa Latin America and the Caribbean. “Through this additional layer of security offered by Basic Visa Tokenization, available in 41 countries and territories in the region, businesses can now guarantee consumers that their credentials are handled even more securely, helping to increase their trust when they buy online. ”
Visa launched the Visa Token Service in 2014, an innovative security technology that replaces Visa’s 16-digit account numbers with a “token” that only Visa can unlock, thus protecting account information and personal data. The “tokens” do not contain details of the consumer’s payment account and can be stored securely on mobile devices or by online merchants to facilitate digital payments.
How it works: the same benefits of tokens
Basic Visa Tokenization enables merchants who become Certified Token Requesters to protect consumer information and sensitive data, such as primary account numbers (PAN), by replacing them with a token that only Visa can unlock. Issuers do not need to actively participate in the request as Visa will provide tokens directly to merchants on behalf of the issuers. All issuers who do not currently use the Visa Token Service will be automatically enrolled in the Basic Visa Tokenization in the participating countries, and this includes issuers with ongoing projects. In addition, now all issuers can choose to
control token life cycle management to optimize authorization rates with
Visa Online tools.
Benefits for the entire ecosystem
Tokenization of e-commerce transactions and deletion of PAN data in transactions brings benefits to the entire ecosystem, helping to increase security, combat fraud, reduce friction in the process of digital payments and optimize transaction authorization rates.
Visa is offering this option to merchants to enable optimal tokenization security for all their e-commerce and card-on-file transactions. Merchants can now become a token requester or work with their acquirer or payment gateway service provider to acquire the tokenization “on behalf of.” This allows merchants to have access to request updates that replace account numbers with tokens and add an additional layer of security, as each trade will have a unique Token Requestor ID associated with it.
At the same time, Visa Basic Tokenization gives issuers time to update their systems to process token transactions and allows them to experience first-hand the many benefits of tokenization. Visa consumers benefit from this integrated back-office protection, as the tokens are unique to each business, so any possible data breach would not affect a customer’s transactions with other merchants or devices.
There are 41 countries and territories that will be enrolled in Basic Visa Tokenization, including Anguilla, Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize, Bermuda, Bolivia, Bonaire, Costa Rica, Curaçao, Dominica, Ecuador, El Salvador, Grenada, Guadeloupe, Guatemala, Guyana, Haiti, Honduras, Cayman Islands, Turks and Caicos Islands, British Virgin Islands, US Virgin Islands. Jamaica, Martinique, Montserrat, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Dominican Republic, Saint Kitts and Nevis, Saint Eustace and Saba, Saint Martin, Saint Vincent and the Grenadines, Saint Lucia, Suriname, Trinidad and Tobago, and Uruguay.
Since the launch of the Visa Token Service six years ago, Visa has added more than 130 token applicants worldwide to the token platform – including mobile and wearable device manufacturers, issuer wallets, online merchants, payment service providers and acquirers – from 107 markets. In Latin America and the Caribbean, already certified Visa Token Service providers include Adyen, Bell ID, Braspag, CyberSource, Thales and YellowPepper.