EMVCo expands EMV tokenization framework

A just released document by EMVCo addresses payment token use cases in e-commerce beyond existing card-on-file and offers enhancements related to how payment tokens can be controlled within a single payments channel. In "EMV Payment Tokenization Specification – Technical Framework v.2.0", EMVCo builds upon the previous document, version 1.0 published in 2014, by refining the roles of parties involved in tokenization.

"EMVCo has been working closely with the payments community to develop the technical framework to create a common functional baseline for payment tokenisation solutions to achieve worldwide interoperability," said Jack Pan, EMVCo Executive Committee Chair. Payment tokenization replaces the primary account number (PAN) with a unique payment token that is restricted in its usage during payment processing.

"This latest version offers significant updates and use cases that reflect payments industry input to define how EMV payment tokens are generated, deployed and managed," Pan stated. "The level of detail assists in establishing a stable payment environment and delivering a common set of tools to facilitate transaction security."

Embracing advanced technologies

Since the release of version 1.0, EMVCo has defined a new data element, EMV Payment Account Reference (PAR), which enables merchants, acquirers and payment processors to link together a cardholder's EMV payment token and PAN transactions. EMVCo has also launched new registration programs for token service providers and bank identification number controllers.

Following are key updates in version 2.0:

• Recognition that entity that introduces payment tokenization to a payment ecosystem is responsibility for establishing a payment token program
• Clarification of details regarding use of a payment token in the authorization process
• Introduction of new concepts concerning shared and limited use payment tokens that support expanded e-commerce use cases
• Introduction of a payment token assurance method that enables token requestors to have information available to identify and verify processes associated with token issuance
• Expansion of payment token issuance process that enables requests for tokens with values other PANs

Industry input welcome

According to EMVCo, the organization is open to all industry stakeholders. For anyone interested in participating, EMVCo offers an Associates Program and a subscription service that offers up-to-date information on current developments within the industry.

"Our work in the area of payment tokenisation continues to evolve as new use cases are identified and functionality is agreed upon," said Cheryl Mish, EMVCo Board of Managers Chair. "The technical framework needs to capture these industry requirements and be flexible enough to interoperate with the existing payment ecosystem while supporting e-commerce, new payment methods and regional variations. To achieve this, we continue to call on the payments community to get involved and provide feedback."

The current document, version 2.0, is available on the EMVCo website on a royalty-free basis. The organization noted that the technical framework is not designed to mandate, incentivize, or define rules, requirements or policies for implementation of payment tokenization solutions by international, regional, national or local payment systems. For more information, visit www.emvco.com.

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