All you need to know about

Tokenization
Visa Token Service, a new security technology from
Visa, replaces sensitive account information, such as
the 16-digit account number, with a unique digital
identier called a token. The token allows payments to
be processed without exposing actual account details
that could potentially be compromised.

How Visa Token Service Works

The Visa Token Service enables digital payment service providers and nancial institutions to offer their
customers a safe way to shop online and with mobile devices. Heres how a token is initiated.

Step 1 Step 2 Step 3

Consumer enrolls their Visa account with a The digital payment service provider Visa shares the token
digital payment service (such as an online requests a payment token from Visa for request with the
retailer or mobile wallet) by entering their the enrolled account. account issuer (such as
primary account number (PAN), security code the consumers bank).
1 and other payment account information. 2 3

VisaNet Issuer
40
00

CA
RD
12

HOL
34

DE
R
56

01/

NA
1
00
6

ME
90
10

Enter payment details below: PAN

4000 1234 5600 9010
01/16
CARDHOLDER NAME
PAN
4000 1234 5600 9010
01/16
CARDHOLDER NAME
?
61,802,000,000

Token Requestor Enter payment

Consumer details below:

PAN
4000 1234 5600 9010
01/16
CARDHOLDER NAME

Token Vault

5 4

Step 5 Step 4
Visa shares the token with the token requestor With the account issuers
for online and mobile (NFC) payment use. A approval, Visa replaces
payment token can be limited to a specic mobile the consumers PAN with
device, eCommerce merchant or number of a unique digital identier
purchases (say, a limit of ve) before expiring. (the token).

How Tokens Are Used

As consumers increasingly shop with connected devices, the need for a seamless and secure digital
payment experience becomes crucial. Without exposing the consumers account to fraud, tokenization
enables frictionless, card-free payments in digital commerce environments.

1 PAIR JEANS
$ 27.00

Checkout

946
936
Checkout

2 PIZZAS
$20.00

Oranges Apples Mangos

Check
out

4000
1234
CARDHOL
5600
DER 01/16
NAME
9010

Pizza Delivery

Online In-Store In-App

Making eCommerce purchases is Tokenization provides a secure way The ability to pay with Visa is increasingly
becoming commonplace. Tokenization for consumers to make in-store embedded in innovative mobile
provides online retailers with an innovative payments by simply waving their applications that make it even easier to
and secure way of handling payments. device near the payment terminal. pay for your transaction on the go.

PAY NOW

1 PAIR JEANS
$ 27.00
4000 1234 5600 9010
01/16
CARDHOLDER NAME

PROCEED TO 1
CHECKOUT 2 PIZZAS
$20.00

1 Payment initiated
The consumer initiates a payment
2 Merchant sends token to acquirer
Depending on the commerce environment, the digital
online, in-store or in-app. payment service provider (e-wallet, eCommerce
merchant or app) passes the token to the acquirer
as part of an authorization request.

Acquirer

3 Acquirer routes the token

The acquirer receives the token and routes it to
Visas network to begin processing the transaction.

6 Transaction completed
The token and payment
authorization are routed back to
the merchant's bank, the acquirer.
VisaNet

61,802,000,000

5 Issuer returns token and authorization

The issuer accepts or declines the transaction and sends
4 Visa sends token
to card issuer
its response back to Visa.

Visa sends the token, along with the

payment card details, to the issuer
for authorization.

Issuer

For more information visit: www.visa.com/digitalsolutions

Source: Visa