In a previous blog post, we talked about how you can share merchant tokens without worrying about PCI compliance. We closed that discussion with the promise to detail the many reasons you would share merchant tokens. We’ll break them down for you here (or you can check out our helpful on-demand webinar that details the full use cases).
Facilitation of business processes
Merchant tokens enable merchants to continue executing business processes that previously required storing sensitive customer data. This is accomplished by exchanging the primary account number (PAN) with a format-preserved token. If a merchant then needs to call out to a loyalty system or obtain the customer’s loyalty status or points balance, the format-preserved token can be used in place of the actual PAN.
Hotel reservations can also benefit from merchant tokenization, as the hotel can use its tokens to manage reservations with third-party reservation engines.
Finally, critical internal business processes including reporting, reconciliation and settlement will be kept efficient and secure by using merchant tokens.
Tokens can be useful for customer service, operations, loyalty, logistics, treasury, business intelligence and outside faciliatory services, proving that tokens are the true enabler of omni-commerce… but there is more.
Customer journey integration
Merchant tokens can facilitate a variety of customer journeys that a merchant has deployed. A single merchant token can be linked to multiple acquirer tokens, allowing the merchant to take advantage of services provided by any of the designated acquirers.
The same merchant token can be linked to network/issuer tokens provided by card brands to support card holders with these brands and the benefits derived from network tokens.
The merchant token is critical for an omni-channel experience, so that merchants can identify customers regardless of the channel or location they choose to shop. For example, with tokenization, a customer can purchase workout clothes online in London and opt to pick them up at a store in New York without the merchant storing any sensitive customer data, such as card numbers.
The token use laundry list
The way tokens can be used include:
- Fast payments
- One-click checkout
- Maintain merchant wallets
- Pick-up and Returns – BOPIS (buy online, pick-up in store) & BORIS (buy online, return in store)
- Share data with customer service or help desk to provide safe, secure, white glove service
- Provide frictionless loyalty
- Follow entire customer journeys through payment IDs, with or without loyalty info
- Have single pane of glass across all payments
- Gain valuable insights into all cohorts
- Upsell or follow-on transactions
To understand more about how tokens enable omni-commerce, check out our on-demand webinar, Influencing the Customer Journey.
For a full set of tokenization resources, read the blog: A Primer on Tokens, Tokenization, Payment Tokens and Merchant Tokens or the eBook An Executive’s Guide to Payment Tokens.