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ReadersSpeak

Card-on-file EMV payment tokenization merchant, transaction type or channel. Tokens can
move through the transaction flow in the same way as
e want to thank André Stoorvogel, Director, the original PAN, meaning merchants can strike an ef-
Product Marketing, Payments at Rambus fective balance between high security and a frictionless
for offering insights on card-on-file EMV buying experience.
W payment tokenization, which are excerpted
below: With card-on-file EMV payment tokenization mer-
chants only store payment tokens, not actual card num-
The size and value of the card-not-present (CNP) mar- bers, in their databases. This delivers security benefits
ket is increasing exponentially as payment use-cases to the digital commerce ecosystem by reducing risk and
across ecommerce, mcommerce and the Internet of mitigating the impact of malware, phishing attacks and
Things emerge and mature. data breaches. Better fraud prevention has a tangible
impact on consumers and merchants.
Collecting and storing payment credentials for future
use, known as card-on-file, is fundamental to the re- Card-on-file tokenization systems enable consumer
mote commerce ecosystem. Although payment meth- payment details to be instantly refreshed when a card
ods utilizing card-on-file offer convenience, they also is lost, stolen or expires. There is no need for a con-
create challenges, and CNP fraud continues to surge sumer to log into an online shopping account to update
worldwide. Merchants must address the growing their details, or to miss out on a subscription due to re-
threat of card-on-file databases being compromised dundant card credentials. Merchants can benefit from
and credentials being used fraudulently. In a constant increased convenience. For example, it helps reduce the
battle against cart abandonment, they must also ensure regulatory burden and costs associated with ensuring
that additional security measures do not compromise PCI DSS compliance for stored card credentials.
the user experience.
Your thoughts?
Security approaches can fight fraud without compro- Please share your ideas on tokenization or other
mising the user journey. EMV payment tokenization
describes the process of replacing a primary account matters of interest to the payments community at
greensheet@greensheet.com.
number (PAN) with a unique payment token that is re-
stricted in its usage, for example, to a specific device,

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