Online Payments 101: An Easy Tokenisation Explainer

Online Payments 101: An Easy Tokenisation Explainer

Online Payments 101: An Easy Tokenisation Explainer

There are few things in life as frustrating as having to enter your card details EVERY SINGLE TIME you shop online. It takes time. It’s error prone. And it’s the root source of many an abandoned cart. Bad for the visitor. Even worse for the business.

Tokenisation is the answer. Making repeat payments easy, tokenisation does away with the need for repeated information entering with an encrypted ‘replacement token’ (linked to the user’s card number) which is created after the first transaction.

The on-card data is then securely stored on the payment provider’s server (eg Cardstream’s), which lightens the load when it comes to your compliance requirements, while your visitor enjoys a quick check-out experience.

In short, tokenisation is an incredibly secure solution for storing cardholder data, without the red tape and worry about the ramifications of payment issues for your brand.

How tokenisation works with Cardstream

1. Your visitor enters their card details on your website for the first transaction and confirms the payment. The visitor is then taken to your payment page, which is hosted by us – Cardstream.
2. The transaction is sent to us to authorise.
3. Cardstream generates an encrypted (ie scrambled) ‘replacement token’ that is linked to your visitor’s card number, which won’t expire unless the card does. This is then sent back to you. A token can also be known as a Cross Reference.
4. The card number replacement token is securely hosted on Cardstream’s PCI Level 1 Compliant servers, and is also sent to you to be securely saved on your website, so your visitor avoids the frustration of having to enter their card details over and over again.
5. When your visitor returns, their transaction will be processed using the details we’ve securely locked away on our servers, making the process smoother and faster.

Want to talk about tokenisation? We’re ready when you are. Call the team on 0345 00 99 575 or email us via solutions@cardstream.com.