CALIFORNIA | Last week, Visa Inc. announced the use of new security technology - the Visa Token Service - that replaces the traditional 16-digit Visa account number preventing exposure of sensitive account information in online and mobile payments.
Visa Token Service
In September 2014, Visa launched its Visa Token Service (VTS), an innovative technology that replaces sensitive payment card information (16-digit account number, expiration date and security code) with a unique series of numbers. These unique sets of numbers can then be used to authorise payment without exposing actual card details online or in Point-of-Sale environments. Visa's Token Service has been one of the enablers for the Apple Pay service launched in October 2014.
To date, more than 500 financial institutions have started to implement VTS. In 2015, the service will expand to more payment environments, helping merchants, financial institutions and mobile device manufacturers to offer secure digital payment experiences.
Tokenize Visa Checkout transactions
Visa also plans to tokenise online transactions with Visa Checkout - Visa’s online payment service that allows consumers to complete ecommerce purchases in just a few clicks. More than 110 merchants globally, including Gap, Pizza Hut and Staples, who have already deployed Visa Checkout, will benefit from safer transactions using this Visa’s token technology.
Reducing the PCI DSS burden
By using tokenization, Visa is eliminating the need for online retailers to store payment account information in order to accept payments online. It is expected that some of the largest ecommerce merchants to deploy the Visa Token Service later this year. Merchants would then process tokens for ecommerce purchases rather than actual card details. That would dramatically reduce the PCI DSS scope of merchants and required investments to comply with the Account Information Security programme of Visa.
Deploying smart technologies
“In 2015, Visa will offer secure payments across a wide variety of devices, platforms and apps,” said Charlie Scharf, chief executive officer, Visa Inc. “In order to enable these innovative new ways to pay, we are deploying smart technologies that help to prevent fraud, while also maintaining consumer and merchant trust in digital commerce.”
Sourced from Press Release by Visa Inc., February 13th, 2015.