02/23/2016 Industry news
Tokenization is generally used for credit card payments. Completing a credit card payment can be a long process of filling in payment and contact details. This leaves room for errors and, in the worst case, may result in cancellations.
Tokenization can potentially reduce the number of abandoned transactions. In essence, this is a system that links a banking system to an online shop system. This option can be used to process Recurring Payments via credit cards. For every credit card payment a unique Recurring ID is created and subsequently encrypted as a token that cannot be used to retreive customer details. As a result potential fraud risks are reduced.
The Recurring ID is a unique number generated by MultiSafepay that refers to the credit card details provided by the customer upon completing the initial transaction. This means that the customer does not have to provide the same detailed information for every credit card transaction; he/she simply selects the existing payment method (via credit card). The merchant can create a transaction by referring to the unique Recurring ID of the consumer in question.
For consumers this means that the customer journey improves greatly since the process of completing a transaction is simplified. This can contribute to an increase in repeat sales, especially when the consumer uses a smartphone or tablet to complete his/her payment.
Do you have any questions about tokenization? Contact our Sales department or your personal contact.