EMVCo Releases Tokenization Specification, Invites Feedback (March 11, 2014)
EMVCo today has released its tokenization specification, and is inviting all payments industry participants to provide feedback. The specification, “EMV Payment Tokenization Specification—Technical Framework v1,” is intended to provide the industry with a consistent, secure and globally interoperable environment to make digital payments when using mobile devices and personal computers, according to an announcement.
Payment tokenization is the process of temporarily replacing a traditional card account number with a unique payment token that’s restricted in how it can be used with a specific device, merchant, transaction type or channel. When using payment tokenization, merchants and digital wallet operators do not need to store card account numbers; instead they are able to store payment tokens that can only be used for their designated purposes.
“It is vital that we have a consistent approach to identify and verify a payment token request, which is supported by industry-agreed channel controls to manage where and when the payment token can be used,” said Dave Meadon, EMVCo executive committee chairman. “This level of consistency eliminates data vulnerabilities at key points in the transaction, which ultimately enhances security.”
Last October, Visa, MasterCard and American Express first proposed a framework for a tokenization standard and, in mid-January, EMVCo, originally formed to manage and further develop EMV specifications, announced it was expanding its scope to include development of the tokenization specification. EMVCo is a global, technical body collectively owned by MasterCard, Visa Inc., American Express, Discover, JCB and UnionPay.
To participate in EMVCo’s payment tokenization activity and provide feedback, stakeholders may join EMVCo’s Associates and Subscriber Program. To read more on the tokenization efforts check out the upcoming edition of Pay Magazine in May.