What are network tokens?
Network tokens are payment credentials specific to a card-merchant pair and used as a substitute for a card's primary account number (PAN), the 15- or 16-digit number found on every credit or debit card.
Who issues network tokens?
They are issued by card networks, such as Visa, Mastercard, Amex, and Discover. This makes network tokens interoperable across the entire payment ecosystem and for a broader range of use cases.
What are the benefits of transacting with network tokens?
Using network tokens can offer the following benefits:
- Reduced exposure to fraud and risk by protecting sensitive customer data
- Reduced PCI compliance burden and costs
- Faster checkout experiences for repeat buyers
- Reduced declines due to outdated card information
- Reduced transaction processing costs, depending on your pricing model
What are third-party network tokens?
Third-party network token payment processing at PayPal refers to the processing of network token transactions using tokens that were externally provisioned (not by PayPal) for a merchant or partner.
Merchants can choose to save and tokenize their customers' cards in-house or with an external Token Service Provider (TSP). Merchants receive a token number back in the response that is plugged into the payments request sent to PayPal and is then processed as a regular credit card or a debit card payment. Since PayPal is not the vault, we cannot create, map, de-map, and validate the tokens to the respective PAN.
Are third-party network tokens available for card-present transactions?
No. Network tokens, including those issued by a third-party entity, are only available for card-not-present
(CNP) transactions, such as e-commerce purchases.
Where can we process third-party network tokens today?
PayPal's third-party network token processing solution is available for PayPal merchants in the US. We will continue to expand to more countries as issuers gain adoption.
Can a merchant/partner migrate their third-party network tokens to PayPal?
Yes. Please follow the instructions here to know more.
How do I get started?
The first step is to onboard to Expanded Checkout. Here's how to apply for Expanded Checkout:
- Click Business Tools.
- Click PayPal Checkout.
- Click Get Started.
- Click Choose under "Have a custom-built site?"
- Click Get Expanded.
After onboarding, visit the PayPal Developer portal to start the third-party token processing integration and testing processes.
For merchants on partner platforms, please check with your partner regarding the eligibility of using third-party-issued network tokens as a payment method. Partner platforms can also learn how to onboard sellers.