MasterCard says it will offer tokenization services to merchants with apps, e-commerce, and recurring billing card-on-file programs, further protecting consumers and increasing convenience when storing cards in merchant databases.
By expanding its Digital Enablement Services (MDES) to serve merchants’ needs
MasterCard extends tokenization support for Apps and e-commerce
it continues to lead the industry in securing cardholder credentials – no matter where they are stored.
To speed and simplify the purchase process in apps and online, as well as for subscription-based and recurring payments like streaming music and video services, club dues, and utility bills, consumers have allowed thousands of merchants to store billions of credit and debit card numbers on their behalf. According to MasterCard Advisors, a typical consumer may have their card number stored in five or more locations.
In addition to the inherent security risks in the storage of card numbers, when a card account number changes, consumers are faced with the task of updating payment information across all of these locations. This typically requires them to remember where their card has been stored, as well as the username and password they created when they stored it. If they are unsuccessful in changing the card number, transactions will fail – resulting in potential interruption in services, lower customer satisfaction and lost sales for the merchant.
The new MasterCard program will enable merchants to harness the power of MDES to increase security and reduce declines for merchants that store card numbers. Through MDES, MasterCard will enable the card issuing banks to replace MasterCard credit, debit and prepaid card account numbers with a secure “token”: a new 16-digit number that represents the existing card number on the front of a payment card.
The tokens will be unique to each merchant and carry extra security protection that will prevent improper usage at any other location, providing additional security and peace of mind for consumers and merchants alike.
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