Very Good Security extends VGS Payment optimisation with Network Tokens

By Edlyn Cardoza

Very Good Security (VGS), the modern standard for secure storage, exchange, and optimisation of the world’s payment data, recently announced that the VGS Payment Optimisation suite now offers Network Tokens, a new feature that enhances the security of payment transactions while minimising fraud and improving approval rates.

A network token is a unique randomly generated identifier issued and unlocked only by a card network like Visa or Mastercard. This secure token can then be used in lieu of a primary account number (PAN), enabling the processing of payment transactions without exposing sensitive card account data. This security technology helps combat fraud for card-not-present digital transactions and card-present physical transactions. Merchants who have wanted the benefits of network tokens have found that gaining access to this security technology is a challenging process. For example, there is a significant overhead of getting a contract with the major card networks. Merchants cannot rely on payment solution providers who are token requestors because they end up with vendor lock-in. Merchants have been looking for a flexible and easy approach of using network tokens.

VGS works directly with major card networks like Visa and Mastercard to replace 16-digit Primary Account Numbers (PAN) with unique 16-digit token identifiers, enabling merchants to process payments through VGS without exposing sensitive card information. Unlike tokens provisioned by other payment service providers that they can only process, Network Tokens from VGS are interoperable between service providers and are recognised by card networks and card issuers.

Built on top of the VGS Zero Data™ Vault, Network Tokens enable high fidelity and trust with card issuers by minimising the exposure of sensitive card data to third parties throughout the payments ecosystem. In addition to providing security and cost reduction, VGS also updates Network Tokens in real-time whenever there is a change in the underlying card account, i.e., when a card has been replaced, suspended, or closed. Merchants can also see an increase in their card approval rates by as much as 3%.

“There are several benefits associated with network tokenisation, including decreased handling of sensitive payment data, greater accuracy of data (e.g., tokens mapped to expired cards and reissued cards are automatically updated) and enhanced security. These factors can all lead to enhanced approval rates.” Jordan McKee, Principal Analyst, Digital Payments at 451 Research, part of S&P Global Market Intelligence.

The Network Tokens feature, which is available as part of the VGS Payment Optimisation suite, furthers the VGS mission to optimise acceptance, costs, and approvals while empowering customers to accept more payment methods as their businesses grow horizontally, vertically, or globally.

“Network Tokens is the next step in creating an all-encompassing payments optimisation platform for any company that processes payments,” said Mahmoud Abdelkader, CEO & co-founder of VGS. “In today’s digital-first world, keeping sensitive payments data safe is table stakes. Beyond improved security, Network Tokens and the VGS Payment Optimisation suite exponentially increase the value of the underlying data, leading to higher authorisation rates and improved consumer experiences, and opening up opportunities for new business lines and revenue generation.”