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What Payments Data Portability & Interoperability Means for Merchants

Blog post from Basis Theory

Post Details
Company
Date Published
Author
Basis Theory
Word Count
907
Company Posts That Month
7
Language
English
Hacker News Points
-
Post removed?
No
Summary

Data portability enables customers or businesses to move data between providers, while interoperability allows different systems to use shared standards to exchange and interpret data, with telephone-number transfers and email serving as common examples. In payments, interoperability developed through networks such as SWIFT and broader financial standards that support increasingly rapid transactions across institutions, although transfer speeds vary by region and provider. Payment data portability is especially relevant when merchants change payment service providers and need to transfer stored cardholder details without requiring customers to re-enter them, but providers may impose costly or slow processes because facilitating a departure may not align with their commercial interests. The passage presents token vaults as an alternative model in which merchants retain cardholder data independently of any one processor, allowing them to securely share tokenized information with one or multiple providers under PCI-DSS requirements while reducing dependence on a single payment gateway.

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