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New tokenisation technology delivers an enhanced payments experience for KBC customers and participating merchants
KBC bank, Ireland’s digital first bank, has partnered with Mastercard on an initiative to deliver increased security to KBC customers who use their KBC issued debit or credit card when shopping online. KBC is implementing this new service called MDES for Merchants, which is available through the Mastercard Digital Enablement Service (MDES), meaning that KBC customers can now take advantage of the latest convenient and secure digital payments technology with participating online merchants, further limiting their exposure to fraud.
Tokenisation is the process of replacing a card’s primary account number – ‘PAN’, the 16-19 digit number embossed on the front of a plastic card – with a “token”, i.e. a unique alternate card number. When customers use their KBC card online, a token is submitted to the accepting merchant for authorisation, rather than the customer’s own card details. By removing real-card data from online payment systems, the card details of KBC customers will remain protected at all times. Additionally, unlike typical card transactions, digital tokens carry no real value if they become compromised.
Commenting, Fergal O’Riagain, Director of Daily Banking Products at KBC Bank Ireland said, “At KBC, we are always looking for ways to enhance the customer journey with innovative digital solutions. Through our partnership with Mastercard, we can now offer our customers a seamless and secure digital payments experience through MDES for Merchants– a unique service that reduces the risk of online card fraud while also supporting continuity of service in instances where repeat payments are required, such as monthly subscription services.”
“If a KBC customer signs up to a subscription service with a participating merchant, there is the chance that their service will be interrupted at some point due to an expired card. However, with KBC on the MDES for Merchants platform, the payment will continue as usual, even though the card details have changed, as the new details will have been automatically updated in the token and the payment processed as usual,” he added.
“KBC customers can now make hassle free online payments with participating merchants and subscription services, with partners including PayPal, Stripe and Braintree (a PayPal service), without having to store their card data with that merchant. This is just one example of how we are working to make our customers lives easier and more convenient, while delivering the security they expect while shopping online.”
This tokenisation initiative will enhance the online customer payments experience by supporting continuity of service between merchants and customers and KBC customers will no longer have to update their card data with the accepting merchant should their card details change. Instead, the new card details are automatically updated in the token, allowing repeat payments to continue without interruption.
Commenting, Sonya Geelon, Country Manager for Ireland at Mastercard said, “This tokenisation initiative provides an additional layer of security for KBC customers when shopping online. By replacing card data with tokens, cardholder information is no longer visible to retailers, payment service providers and acquiring banks. Instead, each transaction is validated through a unique cryptogram, allowing shops and businesses to execute secure online payments with confidence. Furthermore, this reduces fraud risk as tokens cannot be used anywhere other than with the intended business’s website, and offers online shoppers increased peace of mind.”
This service is now live. There is no requirement for KBC customers to register for the service. Instead, tokenisation will automatically be applied to all KBC debit and credit cards when a KBC customer makes an online purchase with a participating merchant.