Cards
Network token
A scheme-issued token that replaces the PAN end-to-end and is automatically updated when the underlying card is reissued.
A network token is a digital identifier issued by card schemes such as Visa (VTS) or Mastercard (MDES) that replaces the Primary Account Number (PAN) across the entire payment lifecycle. Unlike traditional vault tokens created by gateways or acquirers, network tokens are interoperable and recognised by the card issuer, allowing the credential to remain valid even if the physical card is reissued due to expiry or loss. This persistent link with the issuer facilitates more accurate risk scoring and can lead to approval rate uplifts of several percentage points for card-on-file transactions. Merchants typically access these tokens through their payment service provider, who handles the provisioning process with the scheme and the secure storage of the cryptogram required for each transaction. Use of these tokens can also reduce the merchant's exposure to PCI DSS compliance requirements since they do not need to handle raw card data.
Frequently asked
How do network tokens impact interchange and processing fees?
Schemes may offer lower interchange rates or incentive programmes for transactions processed using network tokens because the risk of fraud is lower. However, many acquirers and gateways charge a small per-transaction fee for the tokenisation service, which should be weighed against the potential for increased authorisation rates.
Do network tokens require the customer to perform SCA for every transaction?
Not necessarily. While the initial card enrolment usually involves Strong Customer Authentication (SCA) or 3D Secure, subsequent merchant-initiated transactions (MITs) using the network token can often be processed without further friction, provided they are correctly flagged as recurring or subsequent payments.
Related terms
A PCI-DSS-compliant store of tokenised card credentials that lets a merchant charge a card again without holding the PAN.
Replacing sensitive card data with a non-sensitive surrogate value that can be stored and reused without PCI scope.
A scheme service that automatically updates stored card numbers and expiry dates when an issuer reissues a card.
Ready for velocity?
Tell us about your business. We'll match you with the right acquiring partners and the right route, typically inside a week.