October 2025 Summaries

Network tokenization offers improved authorization rates, reduced fraud, and enhanced security, but its implementation raises several questions for merchants as explored in a recent webinar titled "Evaluating Network Tokens: Are they worth it?". Key insights from the session reveal that the observed benefits of network tokens, such as a 30-50 basis-point uplift in authorization rates, often manifest over time as they primarily address issues like expired cards and soft declines. Retrying declined transactions with a PAN is advisable only in specific scenarios, depending on the type of decline. The discussion also highlighted the importance of resiliency in network token providers, recommending platforms with robust, multi-region infrastructure to avoid single points of failure. Fraud reduction through network tokens is significant, resulting in liability shifts that reduce fraud chargebacks, a critical metric for fraud teams. Furthermore, cryptograms linked to network tokens should be treated as confidential data under PCI DSS, with specific encryption requirements for raw PAN expiries. The webinar offered insights into the effective use of network tokens, addressing concerns about redundancy, incident handling, and PCI DSS compliance in the context of standalone providers and payment service providers (PSPs).

Network tokens offer a promising solution to enhance payment security and efficiency, especially for card-not-present transactions, by addressing issues like soft and hard declines, fraud, and customer friction. Despite the potential benefits, such as improved authorization rates and reduced fraud, the adoption of network tokens remains inconsistent across issuers and countries. Key considerations for implementing network tokens include understanding their role in reducing declines and fraud, maintaining current credentials via lifecycle management, and navigating issuer support variability. Businesses have three main options for adopting network tokens: using payment service providers (PSPs), standalone solutions like Evervault, or building in-house systems, each with its own trade-offs in terms of cost, flexibility, and control. To maximize the advantages of network tokens, companies should employ a fallback strategy, monitor adoption trends, and carefully evaluate ROI, considering factors like transaction volume and operational costs.