To facilitate the payment process for a buyer, it’s possible to save the card token on merchant server and allow future payments to be made using the card token, without the need for the buyer to enter the full set of card details in the payment form. The token refers to the unique combination of the card number and expiration date, stored securely in Payment Gateway server. For added security, it’s possible to ask the buyer to enter also CVC code and/or perform 3DS authentication. The token is only usable under a single merchant and can’t be converted back to the card number and expiration date outside Gateway servers, eliminating the risk of card fraud.
- MIT – Merchant Initiated Transaction
MITs are token-based payments governed by an agreement between the cardholder and merchant that, once set up, allows the merchant to initiate subsequent payments from the card without any direct involvement of the cardholder. As the cardholder is not present when an MIT is performed, the cardholder authentication is not performed. However, an MIT always relates to a previous customer present transaction (even if it is a zero-value transaction) that was performed to establish the initial agreement with the cardholder – this initial payment must be always performed by using 3DS – strong customer authentication (regulated by Payments Service Directive 2 (PSD2)).
MIT payment is initiated by the merchant by using the token which has received with one-off payment when storing the credential.
- CIT – Customer Initiated Transaction
As in MIT payments, previously stored credentials are used for this type of payment. The main difference with MIT payments is that the customer actively participates in the transaction (like one-click-payments).
Growth in digital commerce, together with the emergence of new business models, has increased the demand for faster purchases. Customers expect simplicity, convenience, and the payment process to be intuitive while feeling secure.
The best practice to achieve this is to use tokenization. In essence, a token payment is a “credentials on file” transaction in which a cardholder has explicitly authorized a merchant to store the customer’s account information (card number and expiration date). The information is then replaced with a ‘token value’. Token payments allow you to build a framework for different billing use-case scenarios.
From a technical perspective, once the client has given the approval to save their card details, it is our system that actually saves and securely holds the card details and in return generates a token that will be used to refer back to the given card. Using the token is secure as the token cannot be reversed back to the card number and it is only valid for the merchant to whom it was originally created for.
Global payment trends are moving from one-click solutions to no-click solutions. Digital Payments are expected to be instant, seamless, in-app and invisible – for both the service provider and the end-user. Companies like Uber and Bolt are the best examples of these use-cases.
EveryPay supports several innovative in-app solutions to enhance standard in-store transactions. By using tokenization, EveryPay allows storing card credentials in different apps and digital wallet solutions. As an example, we have helped to solve the payment processing for a wallet solution by Telia (mTasku), one of the largest telecommunication companies in Northern Europe.
The digital economy requires payment solutions to ensure simplicity and convenience. Wouldn’t it be easier if all your bills could be paid automatically? Companies like Netflix and Spotify have already automated such processes.
EveryPay’s card payment solution can also be used as a convenient billing platform. Doesn’t matter where your clients reside, using card payments as a billing method is universal and also a convenient solution to manage your finances.
As an example, this solution works for the following scenarios:
- if you wish to automate your billing processes
- if you sell your products/services cross-border
- if your invoicing is done periodically (e.g. once a month, once a week)
- if you wish to improve and have more control over your billing processes