EMVCo intros 'payment account reference' to link tokens, accounts

EMVCo, the global technical body for the payments industry, has released an update to its publication, "EMV Payment Tokenization Specification — Technical Framework." The update introduces a global, consistent framework for the implementation of "payment account reference."

To be used by merchants, acquirers and payment processors, PAR can enhance security by limiting references to a cardholder's primary account number within the payment ecosystem, EMVCo said in a press release.

Payment tokenization is the process of replacing a PAN with a unique payment token that may be restricted in its use — for example, with a specific device, merchant, transaction type or channel.

Traditional PAN-based payments will continue to be used alongside EMV payment tokens, the release said.

The introduction of PAR, which does not contain financially sensitive data, enables the payment acceptance community to link a cardholder's payment token with their PAN transactions without using the underlying card account number.

This allows for a consolidated view of transactions on a payment account, and is needed for security and regulatory reasons, such as risk analysis and anti-money laundering.

Additionally, PAR is important for value-added services, which often leverage historical transaction data in the management of customer rewards and loyalty programs, the release said.

PAR enables the industry to move away from dependence on a PAN as the primary linkage between a transaction and an account, the EMVCo release said. PAR data cannot be reverse-engineered to reveal the PAN or EMV payment token, nor can it be used on its own to initiate a transaction.

"[W]e have been working with industry stakeholders and EMVCo associates to solicit feedback and determine appropriate updates to the framework, which will optimize the benefits of this technology," said Jack Pan, chair of the EMVCo board of managers. "In addition to PAR, EMVCo has launched a token service provider registration process to promote transparency and interoperability of TSP entities. We look forward to continuing our work with the industry to manage and evolve this payment technology further."