Collaboration of credit card giants in securing digital payments

Visa, MasterCard and American Express have proposed the introduction of a New Global Standard of tokens for online Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.

In response to the growing number of digital transactions and the resultant demand for increased payment security, the three internationally recognized credit card companies have merged in their recommendation of a new global standard whereby tokens will replace account details during the digital payment process in order to heighten payment safety and to reduce (or eliminate) the storage of account details by merchants and other involved parties.

Merchants, Issuers or digital wallet providers request a token and when a customer pays online (or with a mobile, tablet etc.), the token is used (instead of account details) in order to process the payment.

Important features of the standard include:

*A single standard across the board

*Reliable methods to identify and authenticate a customer before swapping the card account number with a token

*Improved Data fields to generate more in depth information to enhance fraud detection

The proposal involves many stakeholders, and aims to align further with important payment bodies such as The Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term, PCI Security Standards Council and EMVCo.

In terms of this collaboration among the card companies, Mike Matan, Head of Global Network Business at American Express says: “By working together to form a common global standard for online and mobile shopping, we will be able to provide enhanced security, interoperability and consistency for all participants within the digital payments eco-system. In addition, we will be able to drive the rapid adoption and expansion of digital payments, delivering innovative new products and services that will allow consumers to realize the full potential of digital commerce in today’s world.”