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Network Tokenization has emerged as a game-changer in the online payments landscape by offering improved approval rates, fraud protection and reduced interchange fees. The use of a unique, encrypted identifier to proxy card information has made Network Tokenization the preferred method of processing payments for high-performing online businesses.
Diving in—why are Network Tokens so fundamentally beneficial?
Fraud Detection
Using Network Tokens ensures that stolen data remains unusable, mitigating the impact of malware, data breaches, and phishing attacks. This proactive approach significantly mitigates the potential impact of security breaches, safeguarding both the organization and its customers from the detrimental consequences of fraud.
Furthermore, embracing Network Tokens can lead to substantial benefits in terms of regulatory compliance, particularly in regard to PCI DSS obligations. Since, unlike with traditional payment methods, the exposure to sensitive data is minimized.
In essence, organizations can proactively fortify their defenses against fraud while simultaneously alleviating the complexities associated with PCI compliance.
Reduce Involuntary Churn
Beyond bolstering security, Network Tokens are best known to mitigate payment refusals. Payment declines range from 10% up to 30%, depending on the industry, of which around 70% can be categorized as false declines.
The ambiguity of such a high percentage has been a frustration for merchants and payment managers for decades. While some, such as Insufficient Funds, offer a very definite reason for payment refusal, the classic Do Not Honor is most often a mix of various reasons and a handed down frustration.
Network Tokens reduce number declines that fall into these -frustrating- generic categories, with the potential to increase approval rates by over 3%, since Payment Manager will also be able to focus on addressing inefficiencies in other areas.
The challenges of implementing Network Tokens
Despite these important benefits, we understand that the implementation of Network Tokens comes with challenges. Incorporating this technology into existing payment flows can require significant technical effort, often necessitating substantial changes to payments infrastructure, such as your vaulting and PCI environment.
These challenges exacerbate when it comes to ensuring centralized compatibility with multiple payment processors and gateways, as you may be required to originate and process different tokens across multiple partners.
Finally, because Network Tokens need to be regularly updated and synchronized with the original card data, their management and maintenance does have an additional operational overhead, particularly in the case of payment reconciliation operations.
In other words, while Network Tokens offer significant benefits, the challenges of integration, compatibility, lifecycle management, and staff upskilling should be carefully navigated to ensure a cost-benefit positive implementation.
How do we do Network Tokenization at Yuno?
At Yuno, from day one we have aspired to make the full benefits of Network Tokenization, both from a technical standpoint and in terms of economic feasibility. We want to make sure that your business can harness its transformative potential from the very beginning of your journey with us.
Agnostic Approach
For starters, we’ve designed our Network Token solution to be agnostic and independent of your payment providers. As a Token Service Provider, Yuno centralizes and unifies the generation, application, and management of Network Tokens across all of your partners.
Reduced Time to Market
We’ve designed our Network Token product with an emphasis on time to market and technical simplicity in mind. As an existing Yuno customer, enabling Network Tokens is a matter of switching you on, no new code nor certifications are required.
We’ve made the heavy lifting for you. Our infrastructure has been upgraded to account for the complexity that Network Tokens can mean for our customer’s business across multiple Card Scheme offerings.
Global Coverage & Expertise
Network Tokens are global, but in Yuno we are acutely aware that performance benefits differ across regions and Card Issuers. We maximize your benefits at the most granular level, where we optimize synergies between Network Token, traditional PAN processing, and other performance products such as Card Updater using proprietary logic.
Regardless of the market in which you choose to collaborate with us, we have made substantial efforts to guarantee that your business benefits from the entirety of advantages derived from processing payments with Network Tokens.
Direct Card Scheme connectivity
We’ve invested deeply with direct integrations to the Card Schemes. In other words, there are no middle men involved. This strategic approach translates to optimal cost-effectiveness and technological prowess for our valued customers, as we harness the most efficient structures available in the industry.
Our dedication to innovation knows no bounds. Currently, our direct integrations with Visa and Mastercard are testament of our proactive stance in meeting and exceeding customer expectations. Moreover, our teams are actively engaged in broadening our horizons, with ongoing efforts aimed at extending our offerings on a global scale.
The results of Yuno’s Network Tokenization
At Yuno, we understand the intricacies of Network Tokenization and are committed to empowering businesses to harness its transformative potential. Our agnostic approach, emphasis on reduced time to market, and global expertise ensure that businesses can seamlessly integrate Network Tokenization into their payment strategies without unnecessary hassle.
As businesses continue to adapt to the demands of an increasingly digital world, Yuno stands ready to partner with you on your journey towards enhanced payment security, improved efficiency, and sustained growth. Book a demo to discover how Yuno can revolutionize your payment processing experience with Network Tokenization.
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