Scheme Tokens (also Network Tokens) are based on a standardized technical framework of the international EMVCo association. Members are the card companies Visa, Mastercard, American Express, Discover, China Union Pay, and JCB. Each card company operates its own Scheme Token system.

Scheme Token technology makes it possible to process online card payments across the entire payment flow up to the card-issuing bank (issuer) using tokens (see diagram). This means no card details (e.g., card number, expiration date, etc.) must be transmitted during payment.

Together with other technical features, the use of Scheme Tokens guarantees maximum protection against fraud and, at the same time, increases user convenience for returning buyers who have a customer account where they store a credit or debit card for future payments.
Further information can be found under the following links:

• Tokenization of payment data in general
• The Scheme token concept

In Computop Paygate, credit and debit card payments via VISA, Mastercard, and American Express can be processed with Scheme Tokens.

Using Scheme Tokens is possible for credential-on-file payments by credit or debit card. Therefore, you need to operate an online store and allow customers to store their debit or credit cards in their customer accounts for later purchases.

Using gateway tokens (such as Computop pseudo card numbers) puts your credential-on-file concept on a secure technical and legal footing. Against this background, the exclusive use of gateway tokens remains unobjectionable.

The additional use of Scheme Tokens also allows online card payments to be processed using tokens across the entire payment flow. Your customers and you as a merchant benefit from numerous advantages of this technical innovation:
 

Improved user experience for your customers when paying with stored cards

• Suppose a card is reissued after it expires or is lost. In that case, the card-issuing bank can automatically transmit this information to Computop Paygate without needing a new token for the new card. In this case, the customer does not have to manually update his card data in the customer account as soon as he makes another purchase.
   
• The card-issuing bank automatically transmits a digital card image to your store's backend, modeled on the customer's actual card. When selecting the payment method, you can display this card image to your customer in the customer account. The customer can then be sure they are using the card they want to use for the purchase.

More purchases thanks to higher authorization rates

• Scheme Token technology means that more data is transferred to the card-issuing bank when a payment is made by credit or debit card than when a typical online card payment is made (via 3D-Secure 2). The average authorization rate increases as the issuer can check the payment in question even more reliably. The bottom line is that this means more purchases, as there are fewer false negatives. When using Scheme Tokens for credential-on-file payments, you can expect an authorization uplift of up to 3 percent points - compared to conventional gateway tokens. The number originates from Visa and Mastercard and applies to the European market as a whole.

No additional costs for credential-on-file payments

• The EMVCo credit card companies want to establish the Scheme Token principle as the standard for credential-on-file payments over the next few years. To motivate market participants to adapt to the new technology, it is conceivable that the card companies will levy surcharges on processing payments that were not processed via Scheme Tokens. Such surcharges would be passed on to merchants by acquirers sooner or later.
   

Maximum security for card data

• By using Scheme Tokens, you offer your customers the best possible protection against theft and misuse of card data and, at the same time, reliably prevent online fraudsters from opening accounts in your online store with stolen card data.
   
• The tokens themselves are also protected against unauthorized use for each transaction. They can also be automatically deactivated by card companies and issuing banks in case of suspicion.

Easier than you think. You can find all the necessary information in our online documentation. We would also be happy to discuss your individual store setup in a personal meeting and advise you on integration. Get in touch with us!