MasterCard adds tokenization for app, ecommerce and card-on-file

In addition to the inherent security risks in the storage of card numbers, when a card account number changes, consumers are faced with the task of updating payment information across all of these locations. This typically requires them to remember where their card has been stored, as well as the username and password they created when they stored it. If they are unsuccessful in changing the card number, transactions will fail – resulting in potential interruption in services, lower customer satisfaction and lost sales for the merchant.

The new MasterCard program will enable merchants to harness the power of MDES to increase security and reduce declines for merchants that store card numbers. Through MDES, MasterCard will enable the card issuing banks to replace MasterCard credit, debit and prepaid card account numbers with a secure “token”: a new 16-digit number that represents the existing card number on the front of a payment card. The tokens will be unique to each merchant and carry extra security protection that will prevent improper usage at any other location, providing additional security and peace of mind for consumers and merchants alike.

The MDES program was designed to be compatible with existing acquirer and payment service provider (PSP) ‘local’ token and encryption solutions, while greatly enhancing the overall network security and consumer convenience. Beyond enabling greater security, when a consumer’s card number or its expiration date changes, the tokens stored with all of their various merchants do not have to be updated, allowing for seamless, ongoing payments.

MasterCard is a technology company in the global payments industry. The company operates a payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.