Tokenization and mobile payments could eliminate card reissue

first_img 8SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr Imagine you lose your credit card while you are away on a business trip. Disastrous? Or worse, imagine you get the unwanted phone call or text alert from your issuer notifying you that your debit or credit card number has been compromised and that card has been shut down. What are you going to do? Today, you probably panic and start to make a lot of phone calls.  But, in the very near future, these situations may be a non-issue thanks to the way tokenization and mobile wallets work together to prevent fraud.Mobile wallets include Apple/Samsung/Android Pay, FI-branded wallets and PayPal and also include smart watches like the Apple Watch and the Samsung Gear.  In the future, mobile wallets will be integrated into your car and your clothes. Tokenization is the replacement of the PAN (the primary account number embossed on the card) with a number that looks like a different card number, but is only to be used with one specific device.  The card number is replaced with a unique token assigned to your Apple Watch, for example, and a different token for your iPhone. So if the actual card number is compromised in some way, authorizations on the card can be shutdown, while payment using the watch or phone can continue. If you lose your watch, that token can be shutdown, without affecting payment using your phone. continue reading »last_img

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