Visa Brings Token Technology to eCommerce

Visa Brings Token Technology to eCommerce

November 3, 2015         Written By Bill Hardekopf

Last week, Visa announced that it was bringing token technology to Visa Checkout, the online service that allows customers to store shipping and payment information without having to re-enter their information. The token service replaces the sensitive information on payment cards, such as the account number, expiration date and security code, with a unique digital identifier. This will enable users to process payments without exposing account details.

Not only will the token service be used on new transactions, Visa plans to help merchants integrate the new service with “cards-on-file.” These are the card account numbers that merchants store in their systems to use for monthly subscriptions or billing services.

More than seven million users have Visa Checkout accounts since it was launched in 2014.

Visa said the token technology used for mobile payments and Visa Checkout, along with their transition to EMV chip technology and biometrics, are a part of their broader efforts to ensure safe transactions for card holders.

“Our goal is always to make payments fast, easy and secure,” said Sam Shrauger, Visa’s senior vice president of digital solutions. “This has been a transformative year for payment security with new technologies that bring added protection to consumer accounts while shopping in-store and in-app, and now online, too.”

Thus far, some online merchants seem to be enthusiastic about the change.

“We’re pleased that Visa has added tokenization to Visa Checkout in an effort to keep the payment details of more Visa cardholders safe with advanced security technology,” said Faisal Masud, executive vice president, global e-commerce, Staples, Inc. “Our customers value mobile solutions that let them conveniently, quickly and securely purchase the products they need to run their business.”

The information contained within this article was accurate as of November 3, 2015. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Bill Hardekopf

Bill Hardekopf is the CEO of and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
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