Tokenization allows for a smoother checkout process while keeping customer information secure and compliant with government regulations. For existing customers interested in discovering more about tokenization or if you would like to accept tokens when you sign up, please contact our team for further advice.
What is Tokenization in payments?
“Tokenization” is a word that is used more frequently due to the rise in businesses accepting mobile payment apps. Tokenization is essentially used as another layer of security to protect card information. Token payments protect sensitive data by replacing it with non-sensitive data such as an algorithmically generated number called a token. Credit card tokenization replaces the customer’s PAN (primary account number) with a series of randomly-generated numbers which is then referred to as a token.
The token system allows your customers to register their card on your website to use for future purchases.They are essentially used to prevent credit and debit card fraud and reduce the checkout time by using stored customer data to complete transactions as opposed to requesting card information each time. Due to the PAN never being compromised, the chance of fraudulent activity through tokens are very low.
This form of payment is ideal to encourage customer retention as entering card details multiple times can often be tiresome. With the option to pay by one click, customers can enjoy a speedy checkout that still remains secure and compliant with data security regulations.
How does the Opayo payment tokenization solution work?
The Opayo payment system offers merchants the ability to tokenize card details as part of the payment process. This is when card details are registered and stored with the Opayo gateway, returning you with a unique identifier code or token for you to store. When a customer returns to your online store, they simply login-in and select the token to complete the purchase removing the need to enter their card details again. This tokenization system works with = Pi Server and Direct methods of integration with Opayo. Using our token payment system, merchants can process a transaction and create a token on the back of a purchase.
The Opayo payment tokenization solution will capture all of the shopper's card details that will be stored on the system. Later when processing future transactions, you will send us the “token” that has already been created, instead of requesting the customer to re-enter their card details.