Mastercard and Visa Agree to Share Tokenization Credentials

Mastercard and Visa Agree to Share Tokenization Credentials

December 15, 2016         Written By John H. Oldshue

Mastercard and Visa are joining forces to push the tokenization process to the next level. Starting next year, the two card providers will begin sharing their tokenization credentials on their mobile wallets.

Tokenization is a process that creates a unique “token” of card data for a transaction. Rather than having the retailer or the payment processor store the actual card number and security code, Visa and Mastercard set up a token for each individual transaction that reduces the risk of fraud and identity theft. The tokens correspond to the original payment data, but Visa and Mastercard are the only ones that know which token goes with which card.

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Until now, tokenization has been a separate effort for Visa and Mastercard. In other words, the companies could only protect their cards if someone processed a transaction through their mobile wallets or a similar program they owned. In the near future, Visa will be able to request data for Mastercards processed through Visa Checkout, and Mastercard can do the same for Visa cards run through MasterPass.

The new partnership will greatly advance the tokenization process and improve fraud prevention services for both consumers and retailers. The transition will begin in the second half of 2017 in the United States, and continue to move globally for the remainder of the year.

The information contained within this article was accurate as of December 15, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About John H. Oldshue

John Oldshue is the creator of He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for
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