O F F T H E B O O K S
O F F T H E B O O K S
network tokens improve functionality . When using tokens , merchants often have higher authorisation and approval rates , reduced interchange costs and transaction failures . Because network tokens are equipped with automatic updates , this prevents declined transactions due to expired or replaced cards .
What are the benefits of using network tokens for businesses and consumers in the context of CNP transactions ?
Consumers will not necessarily be aware of the shift towards network tokens . However , large and forward-thinking cardnot-present businesses that are already pressing for network tokens to be available in their payment environments will increase revenues and reduce fraud , becoming game-changers in their industries .
What challenges or limitations do network tokens face in widespread adoption , and how are payment networks addressing these issues ?
While network tokens are not an entirely new concept , getting them to go live in a normal payment processing environment requires a lot of manual labour , including paperwork and engineering from payment companies . In my opinion , this is the largest hurdle businesses face in adopting network tokens – the implementation . The companies that make this a priority , however , will easily have merchant adoption and reap the benefits that come from utilising network tokens .
How do network tokens contribute to reducing fraud and improving the success rate of CNP transactions in e-commerce and digital payments ?
It all comes down to the issuer ’ s trust in the tokenisation process . E-commerce businesses will benefit from a lower fraud risk and are more likely to approve transactions they perceive as lowrisk . Tokenised transactions have a significantly lower fraud profile due to access to up-to-date information . As I mentioned before , network tokens can be tied to specific merchants , channels or environments , making them virtually useless during fraud attempts . This gives issuers greater confidence in the legitimacy of their merchant or customer transactions . � www . intelligentfin . tech
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