How Does Payment Gateway Tokenization Work?: 3 Types of Integration For Token Vault Detailed

September 2021, RBI issued a mandate for all the merchants saving customers’ cards requiring them to adopt card-on-file (CoF) tokenization. This move aims to prevent card data leakage and online fraud. The regulatory body has set the deadline for the policy compliance as September 30, 2022. 

The aforesaid regulation impacts all types of businesses that accept online card payments and provide customers with the convenience of saving their cards on the checkout page. 

To make the lives of merchants easier while enabling them to deliver a fast and secure shopping experience to their customers, Cashfree Payments offers Token Vault- a complete card tokenization solution.

As an online merchant, you must be gearing up to stay RBI compliant before the deadline closes in.

In this blog, we discuss how you can go about leveraging payment gateway tokenization.

What is Payment Gateway Tokenization?

In order to stay compliant with the new regulation, all merchants and payment gateways/ payment aggregators will either need to tokenize or delete the previously saved cards from their servers.

Here, payment gateway tokenization comes out as a merchant-friendly solution.

It allows payment gateways to act as Token Requestors on behalf of the merchant. Resultantly, merchants like you do not need to go through the hassle of individually working with all major card networks to generate, process and store card tokens. 

Here are 3 ways to integrate with Cashfree’s Token Vault and securely tokenize your customer’s saved cards.

1. No-Code Integration for Standard Checkout Merchants

Standard checkout is one of the most popular payment gateway integration methods best suited for businesses who need to go faster-to-market and do not want to invest in a dedicated tech team to work on building custom integrations for checkout. 

Existing merchants on Standard checkout integration can go live on card tokenization with zero effort.

Salient features

  • Save cards of all card networks like RuPay, Mastercard, Visa, Amex and Diners Club with no additional efforts
  • OTP based authentication before you display saved cards to customers

What Do You Need To Do?

Token Vault will be auto-enabled on your Cashfree Payments checkout page and we take care of your payments and tokenization process end-to-end. The tokenization flow is live on the checkout already, there is no action required from merchants.

2. Customized Integration for Seamless Checkout Flow

Seamless checkout flow is best suited for merchants who look to provide a fully-branded shopping experience on their checkout page. Existing Cashfree Payment Gateway merchants can securely tokenize card payments and offer a faster checkout experience by integrating with Token Vault.

Salient features

  • Save cards of all card networks like RuPay, Mastercard, Visa, Amex and Diners Club with no additional efforts
  • OTP based authentication before you display saved cards to customers
  • Customized payment checkout page
  • Store saved cards on your database for real-time analysis on shopping behavior

What Do You Need To Do?

Merchants on the seamless checkout flow can integrate with Token vault with a minimal effort of two-weeks. You can reach our support team, we’ll provide end-to-end support and share the necessary APIs to help you go live on card tokenization.

3. Token Vault Integration with Interoperability

Token Vault by Cashfree Payments is India’s first card tokenization solution that comes with the interoperability feature

Merchants operating at scale and using multiple payment gateway partners can integrate with Token Vault as the single tokenization service to manage saved card transactions across any card network or payment gateway.  

Salient features

  • Save cards of all card networks like RuPay, Mastercard, Visa, Amex and Diners Club with no additional efforts
  • OTP based authentication before you display saved cards to customers
  • A single token requesting solution that works with your entire payment stack
  • Flexibility to route saved card payments through any payment gateway of your choice

Note: To enable card tokenization feature on a saved card, you need to direct the first card transaction for each customer through Cashfree’s Payment Gateway. Once a card has been tokenized, you can freely switch between different payment gateways without having to tokenize the cards again irrespective of which payment gateway you are using.

What Do You Need To Do?

Integrating with Token Vault to make all the saved cards interoperable with different payment gateways requires two-weeks of tech effort. 

We will offer the necessary support to build the API calls between Token Vault and the payment gateways present in your stack, so that you can tokenize the cards and route those payments as per your business need.

Token Vault’s flexible and customized integration options are built to cater to a diverse set of merchant requirements based on the business size and needs. Get in touch with our experts, opt for the right way to go live on Token Vault and be ready to process card transactions securely before September 30, 2022.


FAQs Related To Payment Gateway Tokenization

What do I do with already stored cards of my customers?

Before the RBI deadline of September 30, 2022, you can tokenize all the customer cards stored on your system using Token Vault. As per the mandate, the cards that are not tokenized before the due date have to be deleted from your system.

I use Juspay as the payment aggregator. Can I process the payment of a card saved via Cashfree’s Token Vault through other payment gateways present?

Token Vault by Cashfree Payments is an interoperable card tokenization solution. 

Through a one-time integration with Token Vault you can securely tokenize all the saved cards on your checkout page. You can also dynamically route the payments of the cards tokenized on Token Vault via any other payment gateway partner/payment aggregator. However, to avail the interoperable feature, a customer’s first saved card payment should be processed via Cashfree Payment Gateway. 

Are there any additional charges to avail Token Vault?

There are no additional charges to tokenize cards using Token Vault. If you are a Cashfree Payment Gateway merchant, you can enable Token Vault on your checkout page based on the type of integration you need.