Learn what these types of payments are and why they are growing so much.
Most frauds involving fraudulent use of payment cards occur in online commerce through copying or duplicating bank cards.
Payment card issuers are seeking to strengthen security measures in e-commerce. In order to try to minimize the losses caused by the fraudulent use of their customers' bank cards.
Start of marked textSHARE IT! Do you know what tokenized payments are? Find out why they are growing rapidly.End of marked text
Limited liability of cardholders in fraud committed with bank cards
According to the OCU, in the event that the holder of a bank card is the victim of fraudulent use, the Law on Services Payment limits the liability of the holder, as the case may be:
Copy or duplicate of the card: as the user does not lose possession of the card at any time and has no way of knowing that the fraud is taking place, the bank must return the card. the full amount of the unauthorized transaction. In this case, the user is not responsible for any amount.
Theft or loss of the card: the user is responsible for fraudulent use before the theft or loss is reported. However, for an amount limited to a maximum of 50 euros, except in the case of gross negligence or fault.
What are tokenized payments?
Tokenization consists of protecting the identification number of the customers' payment card or PAN number. That is, converting the PAN number into a “token” every time a transaction is made.
Thanks to tokenization, sensitive payment method data is replaced by equivalent data, with non-sensitive symbolic values called “tokens”.
In this way In this way, if cybercriminals gain access to this data, they do not have access to the user's payment information. Therefore, they will not be able to use it to make purchases.
Systems that use tokenized payments also have the advantage of facilitating frictionless payment. , made from a Smartphone. This speeds up transactions by not having to use the physical card to make the payment.
More and more applications are using tokenized payments. Some of the best known are:
Google Pay
Apple Pay
Samsung Pay How does the tokenization finance and banking email list process work?
The codes are created by companies such as VISA and Mastercard. They create the tokens and provide them to mobile payment or e-commerce platforms, so that they can use them in transactions instead of the customer's card details.
When a user enters their card details into a wallet, Virtual like Google Pay, this platform requests the token from the token service provider (TSP), which must first ask the customer's bank to verify the data.
When the data is verified, a the code or “token” and is sent to the user’s device.
Once this unique number is created, it is linked to the customer’s device in an irreversible and irreplaceable way. In this way, every time the person makes a payment, the platform will be able to authorize the operation by simply sharing this code. That is, without having to expose the real data.
Why are tokenized payments growing rapidly?
Click-to-pay payment solutions and Payments linked to the Internet of Things continue to grow. In fact, the growth of tokenized payment transactions will exceed one billion transactions by 2026.
Visa is currently working to launch a new
