What are Network Tokens?
Network tokens replace sensitive payment and card information throughout the transaction process. These digital payment tokens, unique and generated by card networks like Visa and Mastercard, serve as a secure proxy for sensitive data. They replace primary account numbers (PANs) and other sensitive details rather than being managed by merchants or their payment service providers (PSP).
Though often used interchangeably, network tokens and payment tokens serve different purposes. Network tokens are issued by card networks and are widely recognized across the entire payment ecosystem.
In contrast, payment tokens encompass any tokens utilized in digital payments. There are several types of tokenization techniques, like payment gateway tokenization, PAN tokenization and PCI tokenization. That means network tokens are a type of payment token, but not every payment token is a network token.
Several key features define network tokens:
Though often used interchangeably, network tokens and payment tokens serve different purposes. Network tokens are issued by card networks and are widely recognized across the entire payment ecosystem.
In contrast, payment tokens encompass any tokens utilized in digital payments. There are several types of tokenization techniques, like payment gateway tokenization, PAN tokenization and PCI tokenization. That means network tokens are a type of payment token, but not every payment token is a network token.
Several key features define network tokens:
- They are created by card networks, not by merchants or payment processors.
- Each token is unique and linked to a specific customer and account number, making it useless if intercepted.
- Tokens are generated when customers start a transaction.
- Network tokens can be used across channels and devices, providing more versatility than other payment tokenization methods.