Token payment systems are the electronic form of making payments. It is a more digitized and secured way of making payments. The electronic tokens are generally generated by banks or some financial institutions. It is also the fastest growing payment method all around the globe. It is a very hassle-free way of making payments.
What are Token Payment Systems?
The token payment system is the most secure and ideal payment solution for all of us lately. It helps merchants the most as they can securely store credit card data off-site and process the information when required. All the credit card information is encrypted and stored in the Customer Information Vault (CIV).
Merchants can send tokens for processing via APIs directly. They securely capture the card data to tokenize the information or import it automatically into the billing platform.
How to Make Transactions through Token Payment System?
The steps to make transactions through token payment systems is mentioned below:
- Pass the credit card information via phone, mail or some by other means.
- You then send the credit card information to the CAS (Customer Information Vault) via API.
- CIV then returns a token back to you which references the customer credit card.
- You store the reference against all your information (name, address, etc ).
- You can then all your future transactions by simply seeking the token instead of repeating all the steps mentioned earlier again and again.
Advantages of Token Payment System
It makes payments process without storing or transmitting your credit card’s information. This minimizes the risk of the data being leaked. Even if the token information leaks it will not be used illegally.
It also allows the usage of protocol connection type. Due to this one can provide their customers with a highly secured payment environment without leading them to the payment screen provided by the merchants.
Token Payment Systems Explained
Let’s have a look at the different platforms where token payment system comes to use:
Apple Pay: You can take a picture of your credit card and simply upload it into your Apple device. The details will then be send to the issuing bank which then generates random numbers (token) replacing your card details. The token is then sent back to your device which programs it. This signifies that the numbers cannot be extracted or stolen by frauds.
Android Pay: It works quite similarly the way it works in your Apple devices. Once, you load your card information into an app, Google does the job by creating a stand in “token” which represents your card number. By doing so, it is impossible for anyone to get your card information.
Payment through Apps: If you want to make payments through an app of your phone to buy something, check if your phone contains a token. If it does the apps cannot get access to your card information.
Payments in e-Commerce: Tokens are also responsible to protect your online shopping. If you shop online through a certain website and the card number has been tokenized by the website, you can relax as your information is completely safe. The retailer will actually never even get to know your credit card number so there’s no chance of any risk.
Few Important Facts About Token Payment System
The token is valid for a certain time period. Once that’s over you need to renew it otherwise you can’t make payments anymore.
Token payment systems is available for both credit card as well as multi credit card tokenization payments.
A lot of people are still sceptical when it comes to Token Payment Systems. This is because they aren’t aware about it the way they should be. In reality it is way more secured mode of payment than cash or cheque.
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