IXOPAY, a leading payment orchestration platform, and Visa, a global leader in payments, are pleased to announce the introduction of support for network tokenization in IXOPAY. Network tokenization simplifies the handling of card-on-file transactions for merchants, which are commonly used to handle subscription billing as well as purchases by return customers.

Tokenization is a security measure that safeguards sensitive card data through the use of tokens. These contain no sensitive card data, instead referencing card data stored in a secure vault. Tokenization is a key component of merchants’ compliance with PCI DSS (Payment Card Industry Data Security Standard), which determines how credit or debit card data must be stored and handled to ensure safe card payments.

Network tokenization uses tokens issued directly by Visa and other card schemes. The underlying card data referenced by the token does not include personal data such as the name and address of the cardholder; card data such as the 16-digit card number (PAN) and expiry date are stored at the scheme. This approach ensures that card data is kept up-to-date, as participating issuers are mandated to perform lifecycle management of the token, eliminating the risk of a transaction being declined due to outdated card details. Changes to the card’s data, such as when a card is re-issued, do not invalidate the token stored by merchants and used to process transactions, as is the case with tokens not issued directly by the card schemes. Updates to card data are handled directly at the card scheme while retaining the validity of the token.

“Network tokenization gives merchants peace of mind, knowing that changes to customers’ card data will not result in declined transactions.”, says Rene Siegl, Founder and Executive Chairman of IXOPAY. “It is thus another tool at merchants’ disposal in IXOPAY to ensure smooth transaction processing and reduce friction for customers.”

IXOPAY will function as a token aggregator, requesting network tokens from Visa and other card schemes on behalf of merchants, and storing these tokens in the IXOPAY platform. Online merchants stand to benefit from lower friction and higher authorization rates over the entire lifetime of the customer relationship when processing card-on-file transactions.

“Subscription-based services in particular stand to benefit from the ability to process payments over the entire lifetime of a customer via network tokens.”, says Rene Siegl. “But the benefits will also be felt by merchants with a loyal customer base by reducing friction at checkout. Minimizing the number of declined transactions is key to maximizing revenue and delivering a seamless customer experience, free of hassle.”

“Tokens are a simple, yet powerful concept pioneered by Visa, concealing and devaluing sensitive payment data to make digital payments more secure. We look forward to collaborating with IXOPAY, as their innovation ‘made in Austria’ will further optimize the handling of tokens for merchants, allowing them to provide their customers with a safe and even more convenient user experience“, says Stefanie Ahammer, Country Manager Austria at Visa.