Exact Payments, known for its innovative contributions to embedded payment technology, today announced the introduction of its network tokenization service. Partnering with Cybersource, a Visa solution, this development aims to bolster security and scalability for businesses utilizing Exact's Payfac as a Service (PFaaS) platform.
"Network tokenization is an absolute game changer. Everyone wins with network tokens except fraudsters," stated Phil Levy, CEO of Exact Payments. This technology is pivotal in reducing fraud risk while improving the overall payment experience for both merchants and consumers.
Research from Visa indicates that network tokenization can lead to a 28% reduction in fraud, enhancing cardholder satisfaction and significantly decreasing costs associated with chargebacks and other forms of fraud. Further analysis suggests that the adoption of network tokens can increase authorization approval rates by 3-4%, providing significant revenue benefits and a competitive edge for businesses.
Utilizing proprietary algorithms, network tokenization replaces sensitive card information with unique token values, ensuring that payment data is transmitted safely across various channels, including in-store, eCommerce, and subscription services. This technology harmonizes the consumer experience while fortifying security.
Levy elaborated on the impact of the new service: "With each new partner onboarded, merchants will start realizing the benefits—higher approval rates, fewer chargebacks, and frictionless payment experiences." The launch also signifies a commitment to educating partners on the implementation of network tokenization, with a focus on enhancing user experience.
"Network tokenization is an absolute game changer for our software partners and their merchants," Levy continued. "We’ve been rolling the service out with early adopters over the past six months. With this launch, the Exact team will accelerate work with clients around education, planning, and implementation of network tokenization."
The advantages of this service extend to lifecycle management by automatically updating card-on-file data, which minimizes declines related to outdated card information. This feature is essential for maintaining operational efficiency in the increasingly fast-paced digital economy.
Bill Dobbins, Senior Vice President and Head of North America Acquiring & Enablement at Visa, emphasized the importance of network tokenization for improving the security landscape in payments. "From the beginning, we have been leading the standards around network tokenization and working with issuers, acquirers, fintechs, and merchants to educate, promote and support the rollout of these services," he remarked.
Dobbins further stated, "Momentum is building across the payments industry, and the benefits include fraud reduction, higher authorization rates, and frictionless cardholder experiences. We are excited to add Exact Payments to the list of Cybersource partners promoting network tokenization, paving the way for a future where digital payments are safer, faster, and more convenient than ever before."
As businesses increasingly turn to embedded payment solutions to enhance customer experience, Exact Payments' new network tokenization service represents a significant advancement in security and efficiency. For more information regarding this service and its implications for the future of payments, visit Exact Payments’ official site.
In conclusion, the collaboration between Exact Payments and Cybersource marks a critical step towards shaping a future where digital transactions are safeguarded against fraud while being efficient. As the adoption of this technology proliferates, businesses stand to gain both financially and operationally.