Menu
Seeking security, American Express aims to swap card numbers with tokens

Seeking security, American Express aims to swap card numbers with tokens

The company's token service allows merchants and mobile payment providers to stop working with sensitive payment card numbers

In an effort to make to make Internet and mobile transactions more secure, American Express has launched a new service that aims to replace payment card numbers with unique tokens.

E-commerce sites and digital wallet applications that use the company's new token service won't have to store customers' card details. Instead merchants, banks and payment processors will be able to work with digital tokens that are mapped to real payment card accounts.

The payment tokens can be tied to specific merchants, transaction types or payment devices, limiting the ability of cybercriminals to misuse them if compromised. This means that widespread adoption of tokenization for card-not-present transactions would likely reduce fraud.

Unlike payment card numbers, if tokens are compromised, they can easily be revoked and replaced without the need to physically reissue the cards they link back to.

The American Express Token Service is based on the Payment Tokenization Specification and Technical Framework published this year by EMVCo, the organization that maintains the EMV standard for chip-enabled payment cards. It is already available in the U.S. and American Express plans to start rolling it out internationally in 2015.

The service's release comes at a time of growing mobile payments adoption, partially driven by the launch of Apple Pay, which also uses tokenization. Major U.S. and international banks are also planning to launch their own mobile payments apps next year.

Those apps will likely use a technology called Host Card Emulation (HCE) that is present in NFC-enabled mobile devices running Android 4.4 "KitKat." American Express has also developed network specifications for HCE to enable its card-issuing partners to use the technology.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags frauddata protectionamerican expressIdentity fraud / theft

Featured

Slideshows

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established partners, emerging players and innovative start-ups, in front of over 460 technology leaders in Auckland.

Reseller News Innovation Awards 2018: meet the top performing partners
Champagne Reception kicks off Reseller News Innovation Awards 2018

Champagne Reception kicks off Reseller News Innovation Awards 2018

More than 460 channel leaders came together to toast the top performers of the New Zealand industry, during the opening Champagne Reception at the Reseller News Innovation Awards 2018 - in association with Techbuyer.

Champagne Reception kicks off Reseller News Innovation Awards 2018
Chasing innovation: how Kiwi partners can create a new customer agenda

Chasing innovation: how Kiwi partners can create a new customer agenda

This exclusive Reseller News Roundtable - in association with Rhipe and Microsoft - detailed a blueprint for customer success, outlining the new role of the modern-day partner and wider network in New Zealand.

Chasing innovation: how Kiwi partners can create a new customer agenda
Show Comments