Recurring Merchants can benefit from Network Tokenization

Recurring merchants are continually looking for ways to successfully complete ‘card not present’ transactions.  The goal is to have this process be as seamless to the customer as possible.  One of the best ways to do this is with “Network Tokenization”.  Network Tokens are created by the payment schemes to take the place of the original credit card number.  Some benefits of using Network Tokens are:

  • Tokens will never expire.  The token will always be kept valid by the payments schemes and issuer as long as cardholder bank account is open.  No more expired cards.  If a customer loses their credit card, the token will be updated automatically with the new information.
  • Help with fraud.  Network Tokens strengthen the security of ecommerce payments.  Card issuers have greater visibility around Network Tokens because they participated in creating them.
  • This added layer of security has a positive impact on Authorization rates.  By saving card data in a secure manner, merchants can offer a more frictionless checkout process.
  • Portability.  One of the best things about Network Tokens is portability.  Merchants need not fear that their tokens will be held hostage by their payments processor.  Network tokens can be moved easily whenever a merchant decides to make changes in their payments processing ecosystem.
By | 2021-02-05T16:03:42+00:00 February 5th, 2021|Categories: Blog Post|Tags: , , , , , , |0 Comments

Buy Now Pay Later

Merchants must continually find ways to attract customers by offering new and different payment methods.  One method gaining in popularity is Buy Now Pay Later.  Similar to the “lay away” model of old, BNPL offers customers flexibility in payments without added interest fees. This model allows customers to purchase online and then break down payments into installments.  For millennials concerned about economic pressures and taking on more debt, this option has been welcomed.  BNPL helps customers manage payments, while still getting the products and services they desire.

For merchants, BNPL still provides all revenue up front, with the added knowledge that the customer is good for the money.  BNPL accounts are linked to the customer debit or credit card with services confirming eligibility.  Some of the biggest players in this space are Klarna, Affirm and Afterpay.  As a recurring merchant, you will start to see processors offering these services as part of the payments toolkit.

By | 2020-10-28T15:52:15+00:00 October 28th, 2020|Categories: Blog Post|Tags: , , , , , |0 Comments