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Insights and Expertise

Payment Account In the context of EMV tokens, a PAR is sent in the
authorization response messages and may be passed to
Reference numbers merchants who may use and store the data. The PAR will
move with the new card number when the account number
is replaced due to a lost or stolen card. This is extremely
explained powerful, as all the associated tokens will continue to be
associated with the PAR as well.

Unfortunately, if the issuer does not notify the token vault
of the newly issued card, the PAR will not associate with
the new card number.
Onions have layers

A PAR may be accessed directly at the point of sale from
the card as well. In this context, the PAR is available
before the authorization request. The use cases for this are
enormous, including facilitating returns when a purchase
was made online and the return is facilitated in-store.
Regardless of the use case, a PAR may also be used to
track or administer loyalty programs and provide a more
complete picture of a cardholder’s use. Because the PAR
value ties back to an individual account number, the PAR
may also be used for investigating fraudulent activity
By Ken Musante because it provides a complete picture of cardholder
Napa Payments and Consulting activities.

previously wrote about the benefits of EMV tokens Loyalty programs were historically associated with the
in "EMV network tokens," published by The Green card account number. With the tokenization of cards, this
Sheet in October 2022 (see www.greensheet.com/ method is not feasible. Other solutions rely on a customer’s
I emagazine.php?article_id=7087. phone number, which requires the pairing with an account
EMV tokens are underutilized. as well as customer action when used with a token. PAR
use is the evolutionary solution to ineloquent and dated
Visa provides a 10-basis point reduction in interchange practices.
when EMV tokens are used. They are more secure and
provide a higher authorization rate than proprietary Because a PAR is personal data, customers should opt in
tokens. EMV tokens also provide for greater flexibility, as before it is leveraged for loyalty programs and tracking.
they may be ported to without any conversion fee. Regardless, a PAR can provide a complete picture of
a customer's activity, and with the rise of tokenized
A better way transactions, is a better way to track the universe of a
Another available benefit is the Payment Account Reference customer’s transactions.
number or PAR. PARs are similarly underutilized and can
assist processors link card numbers and tokens with a Further, PARs are outside of PCI scope, so you can leverage
unique customer. them without impacting your PCI compliance.
This is a powerful tool, especially with the increase POS solutions should incorporate PARs and their benefits
in mobile purchases, which often move card-present to better serve merchants and their clients. Doing so
transactions to tokenized transactions, and the underlying will leverage an existing and powerful tool with little
card is not known. PARs may also be leveraged for Apple additional work.
Pay and Google Pay ecommerce purchases where the card
credentials are auto filled. As founder of Humboldt Merchant Services, co-founder of Eureka
Payments, and a former executive for such payments innovators as
PARs may not be used for financial transactions. A PAR has WePay, a division of JPMorgan Chase, Ken Musante has experience in
a one-to-one relationship with a specific account number, all aspects of successful ISO building. He currently provides consulting
but a PAR may have a relationship with many tokens. This services and expert witness testimony as founder of Napa Payments
may cause confusion if the issuer assigns the same card and Consulting, www.napapaymentsandconsulting.com. Contact him
number to cardholder 1 and cardholder 2, but that issue at kenm@napapaymentsandconsulting.com, 707-601-7656 or www.
persists regardless of whether a PAR is leveraged. linkedin.com/in/ken-musante-us.

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