The vault in the context of payment

Universal tokenization to optimize your payment journey

Your challenge as an e-merchant is to offer your customers a payment process that is based on a perfect balance between transaction security and user experience.

Thanks to the tokenization of bank cards, you can reach an acceptance rate of 95% on your payments while improving the fluidity of payments. Let's find out together how to best use it.

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What do we call the vault in the context of card payments?

The vault in payment consists of storing card data in a secure safe so that it can be reused later. In exchange for the card number, a token will be assigned to a customer based on his payment method and card number and communicated to the merchant by the payment provider. This token can only be used by the merchant in his environment and allows you to replace sensitive data with non-sensitive data to facilitate their handling.

Usually, this tokenization is offered by the PSP, which can retrieve information during payments. However, most major e-commerce sites have at least two payment providers, and here the story can quickly get complicated...

By moving vault management to the level of the payment orchestrator, Purse offers you a powerful asset: agnosticity and therefore flexibility in managing card payment data!

• Agnosticity about 3DS authentication : by decorrelating PSP authentication, you can use 3DS authentication regardless of the PSP at the beginning and/or end of the transaction.
• Storage agnosticity : the generated token does not depend on a PSP, it can be used to call the card and send it to the right provider at the right time.

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How Purse is turning universal tokenization into a strength for your e-commerce

When we talk about tokenization, we first think of the One Click payment but it goes much further.

We have modelled a set of value-added services to give you the ability to manage map data, without managing sensitive data.

1. The payment widget: Simplicity and efficiency

This tool is the visible part of the feature: the one that your customer will use when paying. This is the payment data entry block that can be integrated into your one-page checkout.

Here's what you can do:

• Choice of dynamic network: you now have the obligation to offer the choice of payment scheme to the customer, who often does not know what to click on. Thanks to the choice of the dynamic network, the brand will automatically pre-select itself to correspond to the IIN (Issuer Identification Number) while leaving the possibility of manually modifying the network (CB, VISA, Mastercard...)

• Card registration: Offer the cardholder to register their card and link it to their customer account.some text
  • It is up to the customer to choose whether or not to register their card.
  • Registration can be done before or after authentication, depending on the payment method used.
  • The customer can register several payment methods (his bank card, his paypal account...)
  • The payment method will then be added to the customer's wallet in their customer account to simplify future payments on your site.

• Payments with a registered card :some text
  • During the following payments: his payment method will automatically be displayed and proposed in the payment widget if the customer is connected to his customer account for a One Click payment.
  • Possibility to remove a payment method from the list of registered payments
  • Possibility to update a payment method

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2. Universal tokenization for more flexibility and a frictionless journey
   
   If you currently use several PSPs, you are juggling several tokens. In the event of unavailability of one of the partners or a change of supplier, token management can become a real headache and lead to payment failures, as PSP environments are hermetic between them.
   
   The whole point of entrusting the management of the vault to your Purse payment orchestrator lies in the flexibility of being able to use card payment data regardless of the payment provider on which the transaction will be carried out. Purse is responsible for managing card data security and transmission in a higher-level PCI DSS environment.
   
   Another advantage of tokenization is to be able to fall into one of the cases of exemption from the application of PSD2. Indeed, the whole challenge is to be able to propose A course Frictionless while complying with the Payment Services Directive. Several options are then available to you to offer a payment process without strong authentication while controlling the risk of fraud:
   

• Tokenized cards are customer cards that you know, the risk of fraud is low: although the decision remains in the hands of the issuing bank, you can request a frictionless payment on these cards which will be more likely to succeed.
• Recurring payments: for recurring payments with a constant amount and payee, you fall within the scope of the exemption.
• Finally, thanks to its Fastpass solution, our partner Payplug reaches an impressive rate of 95% of frictionless transactions for cards issued by the BPCE group. This represents around 20% of cards in France, so potentially... 20% of your customers.

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3. Card routing: to optimize the payment process
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   Card routing refers to the route that the card will take to reach the right purchaser. This is the technical part, which is not visible on the payment page, and which Purse organizes the orchestration of
   
   Once the card arrives at Purse, stored and secured, we can imagine sending it to the best possible place, depending on the context of the payment.
   
   Here are some examples of how card routing can be used to improve the customer experience:
   

• Managing the emergency:
  
  
  • By activating an automatic retry function: in the event of an error during the payment process, the previously stored payment data can be sent back to the payment provider to retry the payment without intervention by the buyer.
  • By activating a fallback function: if your main payment provider fails during payment, you can direct the payment to your secondary payment provider, without the customer having to enter their card number again: regardless of the PSP of the original payment, we are able to send the card to another provider.

PSP failures are rare but can happen and this is then catastrophic for your e-commerce and for your customer's experience. With this optimized emergency management, the outage will remain transparent for everyone!

• Managing the “on us” :
  
  By reading the IIN (Issuer Identification Number) we can detect the cardholder's bank, and according to your routing rules, send it to the acquisition partner of your choice.
  
  
• PSP AB testing:
  
  For a given time, use card routing to do AB testing on several payment providers: the analysis of the payment results obtained will then allow you to build the optimal combination of routing rules for your e-commerce.
  
  

The benefits of tokenizing payment data for your e-commerce site

The range of functionalities that card tokenization allows should give you a glimpse of what's next.

The benefits are multiple and the impacts at several levels:

For the merchant

1. The technical benefits for your e-commerce
   
   
   • security :
     
     
     • Regulatory compliance:
       • you don't have any sensitive data to manage, everything is managed by Purse: RGPD compliant and PCI DSS secure storage.
       • Dynamic brand display managed by Purse based on card number.
     • Reduction of fraud: registered cards come from known customers, have a better acceptance rate and very few fraud on these profiles.
     • Included in the Purse integration: everything we're talking about here is doable once you go through us, it's included in the service!
     • Simplicity of implementation: the intelligence of the solution is managed on the Purse side.
     • Back-up management without affecting the customer journey: possibility of having emergency solutions without impacting the customer experience!
     • Payment service provider agnostic solution, a unique integration.
   • ‍Integration:
     

1. • • Reduction of fraud: registered cards come from known customers, have a better acceptance rate and very few fraud on these profiles.
     • Included in the Purse integration: everything we're talking about here is doable once you go through us, it's included in the service!
     • Simplicity of implementation: the intelligence of the solution is managed on the Purse side.
     • Back-up management without affecting the customer journey: possibility of having emergency solutions without impacting the customer experience!
     • Payment service provider agnostic solution, a unique integration.

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2. Marketing benefits impacting your turnover:
   
   
   • Optimizing the acceptance rate : all the mechanisms put in place will automatically increase your acceptance rate: known customers, rules that allow transactions to be replayed, increased frictionless payments... what if you went for up to 95% acceptance rate?
   • Increase the conversion rate : the Holy Grail is to make payment invisible in the shopping experience. With One Click payment, you offer simplified payment, so it's a boosted conversion rate.
   • Loyalty: an essential tool for your recurring customers. If you are lucky enough to have loyal customers who pay regularly on your site, they should feel recognized and benefit from a smoother experience, without going through a cumbersome and tedious payment process each time. Be a love brand until the payment is complete.
   • Increase frictionless on your site : seamless payment is the guarantee of a better user experience, a smooth journey and a purchase that goes all the way. Do you know your customers? The risk is lower, define the rules of the transactions for which you can request a frictionless payment. Our experts will help you make and configure these choices.The financial benefits

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       3. Financial benefits

Opting for intelligent card routing that allows you to choose the service provider according to the cardholder's bank can save you considerable money on the commissions negotiated with your banking service providers.

• Brand choice: a poor choice of network on the part of the customer (due to lack of knowledge) can cost you a lot. Dynamic choice allows you to control this risk.
• Increase in frictionless = Increase in acceptance = Increase in your turnover

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Conclusion

The implementation of a vault solution for payments represents a major strategic challenge for any e-merchant wishing to protect the sensitive data of its customers, with a trusted partner capable of providing a complete solution combining universality, security and optimization of transactions.

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And you, ready to transform your payment journey and maximize your conversions?

Our experts respond to the specific problems of your business.