Trends Report

How To Determine If It's Time For You To Use Card-On-File Payment Tokens

The Benefits And Drawbacks Of Using The Newest Evolution Of Payment Tokenization

May 19th, 2021
With contributors:

Summary

Card-on-file payment tokens (PTC) offer better lifecycle management than other types of payment tokens while still offering the fraud protection that merchants expect. It's most helpful for merchants to adopt card-on-file payment tokens for transactions if any of the following are true: 1) card-on-file transactions make up a significant portion of their sales volume (e.g., subscriptions and e-commerce); 2) their merchant identifier code has been flagged as high-risk with issuers; and/or 3) their payments team is big enough to adapt to immature — but promising — optimization opportunities. In this report, we explain the benefits and drawbacks for PTCs and how to decide whether or not they are strategic for your company to start using today.

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