Network Tokenization

Overview

Network Tokenization (NT) is a modern, ecosystem-wide tokenization framework managed directly by major card schemes (Visa, Mastercard).

It is widely used by services such as Click to Pay, Apple Pay, and other digital wallets. This page focuses on Network Tokenization in the context of Netaxept and Card-on-File.

Instead of storing card details inside a single gateway's vault (such as Nets), Netaxept acts as an orchestrator that requests a token from the scheme's Token Provisioning Service (TPS), such as Visa Token Service (VTS) or Mastercard Digital Enablement Service (MDES).

The resulting Network Token replaces the raw PAN throughout the payment lifecycle, from the merchant through Netaxept and the card scheme network to the card issuer.

Core Technical Rules & Constraints

Storage and Provisioning

Network Tokens are provisioned and managed by the card schemes' Token Provisioning Services, such as Visa Token Service (VTS) and Mastercard Digital Enablement Service (MDES).

Lifecycle Management (Auto-Updates)

Because the token is managed at the scheme level, if a cardholder receives a replacement card due to expiration, loss, or theft, the scheme automatically updates the underlying PAN mapping. The token remains valid without requiring the merchant or cardholder to re-register the card.

MIT Restriction

Network Tokenization in Netaxept is strictly limited to Merchant-Initiated Transactions (MIT). Supported use cases include recurring subscriptions, installment payments, and unscheduled credential-on-file merchant billing.

No 1,100-Day Expiry

Unlike PSP Tokens, Network Tokens are not subject to Nets Card Vault cleanup rules or the 1,100-day inactivity limitations because the lifecycle is managed directly by the card schemes.

How Network Tokenization works

When a customer's card is enrolled for Network Tokenization, Netaxept requests a Network Token from the relevant card scheme's Token Provisioning Service (TPS), such as Visa Token Service (VTS) or Mastercard Digital Enablement Service (MDES).

The Network Token becomes the payment credential used for future merchant-initiated transactions. Unlike traditional PSP tokenization, the lifecycle of the token is managed by the card scheme.

Typical flow:

1. Customer registers a payment card.
2. Netaxept requests a Network Token from the card scheme.
3. The card scheme returns a Network Token.
4. The Network Token is stored and associated with the customer's payment profile.
5. Future merchant-initiated transactions are performed using the Network Token.

Benefits of Network Tokenization

Network Tokenization provides several advantages over traditional card storage solutions:

• Automatic lifecycle management by the card schemes.
• Reduced risk of failed transactions caused by expired or replaced cards.
• Improved continuity for recurring payments and subscriptions.
• No dependency on Nets Card Vault token-retention rules.
• Tokens remain valid when the underlying card is renewed by the issuer.