SAN FRANCISCO–(BUSINESS WIRE)–Very Good Security (VGS), the modern standard for the secure storage, exchange and optimization of payment data worldwide, today announced that the VGS Payment Optimization Suite now offers Network Tokens, a new feature that improves the security of payment transactions while minimizing fraud and improving approval rates.
A network token is a randomly generated unique identifier issued and unlocked only by a card network such as Visa or Mastercard. This secure token can then be used in place of a Master Account Number (PAN), allowing payment transactions to be processed without exposing sensitive card account data. This security technology helps fight fraud for digital cardless transactions and physical card transactions. Merchants who wanted the benefits of network tokens found that accessing this security technology was a difficult process. For example, setting up a contract with major card networks comes with significant overhead. Merchants cannot rely on payment solution providers who are token requesters because they end up with vendor lock-in. Merchants were looking for a flexible and easy-to-use approach to network tokens.
VGS is working directly with major card networks like Visa and Mastercard to replace 16-digit Master Account Numbers (PANs) with unique 16-digit token identifiers, allowing merchants to process payments through VGS without exposing sensitive information from the menu. Unlike tokens provided by other payment service providers which can only be processed by them, VGS Network Tokens are interoperable between service providers and are recognized by card networks and card issuers.
Built on top of the VGS Zero Data™ vault, network tokens enable high fidelity and trust with card issuers by minimizing exposure of sensitive card data to third parties across the ecosystem payments. In addition to providing security and cost reduction, VGS also updates the network tokens in real time whenever there is a change in the underlying card account i.e. when a card has been replaced, suspended or closed. Merchants can also see an increase in their card approval rates of up to 3%.
“Network tokenization has several benefits, including less handling of sensitive payment data, greater data accuracy (for example, tokens mapped to expired cards and reissued cards are automatically updated), and enhanced security. These factors can all lead to improved approval rates. Jordan McKee, principal analyst, digital payments at 451 Research, part of S&P Global Market Intelligence.1
The Network Tokens feature, available as part of the VGS Payment Optimization Suite, furthers VGS’s mission to optimize acceptance, costs and approvals while enabling customers to accept more payment methods as their customers grow. activities expand horizontally, vertically or globally. “Network Tokens is the next step in creating a global payment optimization platform for any business that processes payments,” said Mahmoud Abdelkader, CEO and co-founder of VGS. “In today’s digital world, the security of sensitive payment data is a major issue. Beyond improving security, Network Tokens and the VGS Payment Optimization Suite exponentially increase the value of the underlying data, driving higher authorization rates and better customer experience, and opening up opportunities for new lines of business and revenue generation.
The new Network Tokens feature will soon be available as an invite-only private beta. Apply for the beta program here. You can also get started with VGS Payments Optimization now by registering here.
About very good security
Very Good Security (VGS) is on a mission to secure the storage and exchange of payment data around the world while maximizing its usefulness. With a unique Zero Data™ approach to data security, VGS enables businesses to turn the burden of sensitive data into an asset by creating opportunities for more revenue through data monetization, new business lines, increased product innovation, omnichannel insights, fraud reduction and more. . For more information about VGS, visit verygoodsecurity.com.
1Source: 451 Research, an affiliate of S&P Global Market Intelligence, Finance organizations must prioritize customer experience and technology to build loyalty in a digital-first landscapeOctober 18, 2021