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Education

Out of the PAN and into the PAR advantage and will provide acquirers and solution
providers that implement EMV tokens a competitive
Another benefit afforded merchants utilizing EMV tokens pricing advantage.
is they may leverage the payment account reference
(PAR) as a way to link transactions with the underlying This needs to be considered, however, in the context of
card number. PAR data cannot independently be used to the transaction size as the token service provider has a
authorize a transaction and, by itself, it is not considered fixed tokenization fee. On the other hand, authorization
PCI data. This is an enormous benefit, as it allows the use rates (within the United States) should increase, and fraud
of the PAR for customer identification while maintaining should be lessened. Adoption outside the United States
the PAN within the payment ecosystem. remains problematic, and coverage within the United
States is not universal. Nonetheless, EMV tokens should
This can help identify and thwart money laundering, for be considered by merchants and platforms. There are
example, even though the customer’s card number is not enormous benefits to be had.
known. This also enables support for value-added services
such as fraud screening and loyalty identification and As founder of Humboldt Merchant Services, co-founder of Eureka
support, which can be maintained outside of PCI scope. Payments, and a former executive for such payments innovators as
WePay, a division of JPMorgan Chase, Ken Musante has experience in
The PAR can be linked to PAN and successor PANs, which all aspects of successful ISO building. He has also served as an expert
are generated due to card replacements from a loss/stolen witness on numerous complex civil and criminal cases in payments,
event. This allows issuers to to update the PAN outside a service he provides, along with consulting on merchant services
of a cardholder’s manual intervention or the need for an and platforms, as founder of Napa Payments and Consulting,www.
account updater solution. napapaymentsandconsulting.com. Contact him at kenm@napapay-
mentsandconsulting.com, 707 601 7656 or www.linkedin.com/in/
Visa recognized the benefit of EMV tokens over proprietary ken-musante-us/.
tokens and provided a 10 basis point differential for when
an EMV token is employed. This is a significant monetary

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