Tokenization is a technology that is widely used by international payment systems (MPS) such as Visa and Mastercard. It involves the process of exchanging sensitive data for non-sensitive data called "tokens" which allows payments to be processed without exposing actual account details. Tokenization technology has become standardized across MPS, with Visa calling it Visa Token Service (VTS) and Mastercard calling it MasterCard Digital Enablement Service (MDES).

The Visa Token Service

The Visa Token Service replaces sensitive account information such as the 16-digit primary account number with a unique digital identifier called a token. This solution reduces the risk of fraud by using tokens and supports online, in-store, and mobile in-app purchases with flexible deployment and management options. This helps to simplify the process of online payment for consumers while also improving security.

The MasterCard Digital Enablement Service

Similarly, the Mastercard Digital Enablement Service is a data interchange platform for generating and managing secure digital payment tokens. It provides functionality that allows issuers to resolve issues of digitization, transaction processing, and lifecycle events associated with tokenized queries from consumers.

Benefits of using VTS/MDES feature

Using the VTS/MDES solution to process online payments is an important step in protecting user data, significantly increasing the security of payments, purchases, and transfers made on the Internet. Tokenization in e-commerce improves user experience and increases conversion rates. The token replaces the usual number of a payment card, and the user only needs to enter the data of their physical card one time in a personal account, on the website, or in the merchant's mobile application, and it will be tokenized using the VTS/MDES at the merchant's request as soon as the issuing bank approves such a request.

In addition to increased security, all merchants using the tokenization service will be able to quickly and automatically update their card payment information in the event of expiration, reissue, or compromise, eliminating the need for the holder to update their card details with these partners. It's also possible to display real card designs in the client's account on the website or in a mobile application, having previously requested them through the Visa Token Service. Overall, tokenization provides a convenient and secure method of processing payments, benefiting both consumers and merchants.


For more detailed information and to set up this functionality, please contact your Account Manager.