't have to be complicated!

Why migrating tokens doesn’t have to be complicated!

4 June 2024 in Blog

by Ludovic Plisson

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Migrating tokens between Payment Service Providers (PSPs) can be a daunting task for many e-commerce businesses. However, why migrating tokens doesn’t have to be complicated is a question worth exploring. The traditional process is often complex, time-consuming, and fraught with delays and potential costs imposed by the outgoing PSP. Solutions like NORBr offer a groundbreaking approach that significantly simplifies this process.

 

The necessity of multiple PSPs

Large e-commerce merchants have long understood the necessity of having multiple PSPs to optimize payments performance and availability. This approach ensures better authorization rates, reduced costs, and enhanced fraud management. As such, the question of migrating or adding a new partner to the payment stack is central to maintaining a competitive edge.

Emphasizing a single PSP can hinder optimal payments performance, according to Dwayne Gefferie, in his insightful LinkedIn post. In this infamous mini-essay, he explains that true payment performance requires multiple transaction routes to optimize key metrics.

This underscores the necessity for seamless PSP integration, further validating the innovative solutions provided by NORBr.

> For more on optimizing payments performance, see our article on payment processing fees: a money-saving guide.

 

Understanding the traditional token migration process

Token migration involves transferring payment tokens from one PSP to another. Tokens are alphanumeric identifiers that replace sensitive card details, making transactions more secure and PCI DSS compliant. Here’s a step-by-step look at the traditional migration process:

  • Information gathering: The merchant’s personnel must obtain information from their current PSP, including Security staff contact
  • Request initiation: The merchant’s Security Operators, if any, request the token data from the current PSP’s Security staff.
  • PSP agreement: The existing PSP must agree to the token migration, and this process can cause delays or even be denied.
  • Inter-PSP compliance check: The existing PSP’s Security staff must validate that the receiving PSP is compliant with the PCI DSS.
  • Inter-PSP transfer procedure: Both the existing and new PSP must agree on a transfer procedure, including encryption methods and algorithms, secure transfer mechanisms, credentials exchange, data formatting and presentation, timeline; Different PSPs will have different security requirements, this process can stall for several weeks, sometimes months
  • Data export: Upon agreement, the existing PSP exports the token data. This step may incur costs and take weeks.
  • Initial data transfer: The new PSP securely receives the token data.
  • Integration: The merchant integrates the new tokens with their payment systems, which may require significant development resources.
  • Wrap-up data transfer: The new PSP receives the differential data between the initial transfer and the wrap-up.

This process can be cumbersome, as merchants are often at the mercy of the outgoing PSP’s timeline and willingness to cooperate.

In some edge cases, the existing PSP charges a fee for “urgent” handling of the request.

Additionally, the potential for service disruptions during the migration period can impact the merchant’s revenue.

 

The NORBr advantage: simplifying token migration

NORBr revolutionizes the token migration process by offering a universal tokenization system. Here’s how NORBr makes this transition seamless:

  1. Immediate use of new PSPs: Merchants can instantly add and use new PSPs for new subscriptions, bypassing the traditional waiting period.
  2. Seamless integration for recurring payments: Merchants continue billing existing subscriptions using the old PSP tokens, which NORBr converts without requiring any action from the merchant.
  3. Universal tokenization: NORBr tokens can represent various payment methods, including card numbers, Google Pay, Apple Pay, PayPal accounts, and more.

With NORBr, merchants interact with a single type of token (the NORBr token), regardless of the underlying PSP or payment method. This approach not only reduces the time and effort involved in token migration but also allows merchants to maintain a flexible and scalable payment infrastructure.

> To learn more about the efficiency of tokenization, check out our article efficiency meets tokenization.

Traditional token migration vs. NORBr token migration

Traditional token migration vs. NORBr token migration

 

Conclusion

Understanding why migrating tokens doesn’t have to be complicated is essential for any e-commerce business looking to optimize their payment infrastructure. With NORBr’s innovative solution, merchants can easily manage and integrate multiple PSPs, ensuring a smooth and efficient payment system. This streamlined approach not only saves time and reduces costs but also enhances overall payment performance. By leveraging NORBr, businesses can focus on growth and customer satisfaction, knowing their payment processes are in capable hands.

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