NMI Announces Support for Network Tokenization, Reducing Operational Costs and Enhancing Security for ISOs, Software Providers, and their Merchants

Audrey Surette (for NMI)
NMI@pancomm.com

NMI®, a global leader in embedded payments infrastructure, announces NMI Customer Token Vault, a new extension to the NMI Gateway. Customer Token Vault introduces network tokenization with dynamic tokens issued and managed by major card networks, along with the ability to securely store and protect sensitive card data for processor agnostic provider tokens.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250130019681/en/

(Photo: Business Wire)

NMI Customer Token Vault is specifically designed to reduce costs by lowering interchange fees, increasing acceptance rates, and minimizing chargebacks, while improving security and enhancing repeat payment experiences.

Addressing the growing challenge of transaction fraud, NMI Customer Token Vault provides ISOs, software providers, and their merchants with a powerful solution to meet modern security requirements. This new extension to the NMI Gateway enhances security by reducing the risk of data breaches, and simplifying PCI DSS compliance, while also improving approval rates and streamlining payment processes.

Jared Drieling, Chief Innovation Officer, TSG (The Strawhecker Group) said:

“Merchants adopting network tokens are seeing tangible benefits, including reduced fraud and improved approval rates. Led by the likes of Mastercard and Visa, network tokenization represents a significant advancement in securing payment transactions while enhancing the overall efficiency of digital commerce. With the adoption of network tokens on the rise we’re seeing a safer and more efficient payments ecosystem that's better equipped to support the growing demands of digital commerce."

Lisa Lloyd, Senior Product Manager at NMI, said:

"From reduced costs, chargebacks and fraud to higher approval rates, network tokens are a game-changer—particularly for subscription-based and digital businesses with 'save card' features. It eliminates the hassle of updating expired card details and reduces declined transactions, making online shopping smoother than ever. With NMI Customer Token Vault we’re giving our partners and their merchants a solution that not only reduces costs and elevates transaction security but also delivers a better payment experience for consumers."

Chris Gains, CEO at International Payment Solutions, said:

"Network tokens offer tremendous value to our merchants and their customers. By leveraging network tokens with NMI Customer Token Vault, we’ve seen a noticeable improvement in approval rates for subsequent transactions, and expect ongoing reductions in fraud and chargebacks. For small business owners this is a significant advantage and builds trust from the very start, paving the way for seamless recurring sales.”

NMI Customer Token Vault offers network tokens, replacing primary account numbers (PANs) found on every credit and debit card with dynamic tokens managed directly by the card networks, to ensure data is secure at every step of the payment process. They reduce the risk of exposure to raw cardholder data and increase transaction approval rates and can result in lower interchange rates. Because tokens are not considered cardholder data, the systems that process, store or transmit them have a reduced scope for PCI compliance. Customer Token Vault also includes automatic updates of card details, ensuring that merchants always have the most up-to-date information on file, further reducing the likelihood of unnecessary declined transactions.

Benefits of NMI Customer Token Vault

• Reduce costs: Lower interchange fees on qualifying transactions, fewer declines, and minimized chargebacks lead to significant savings for high-volume businesses.
• Continuity for customer transactions: Automatic updates of card details by the issuing networks mean that the card information on file is always current, reducing declined transactions due to outdated or incorrect card details and improving authorization rates.
• Increase authorization rates and reduce fraud: Merchants using network tokens benefit from a 30% reduction in fraud rates and a 4.6% increase in approval rates, driving higher revenue while significantly lowering fraud-related costs.
• Minimize chargebacks: Network tokens shift liability for chargebacks, further securing transactions and reducing the incidence of false declines.
• Protect customer data: Network tokens eliminate the need to store and handle customer payment data, ensuring a safer payment environment, reducing the scope for PCI compliance and mitigating the risk of data breaches.

Customer Token Vault also securely stores cardholder data and provides processor-agnostic tokenization to protect sensitive information. Partners and their merchants can now benefit from the dual advantage of secure provider token storage and the added flexibility, security and reliability of network tokenization for streamlined payment experiences.

Learn more about NMI Customer Token Vault:

NMI Customer Token Vault Payment Gateway Extension
Blog: Network Tokens Make Transactions Safer, Cheaper and More Reliable
Watch the NMI Customer Token Vault explainer video

About NMI

NMI is a global leader in embedded payments, powering more than $225 billion in payment volumes every year. From our industry-leading payment gateway technology to our seamless merchant underwriting, acquiring, onboarding and management platform, we enable our partners across the entire payments ecosystem. We help our partners deliver frictionless payment solutions to their customers, offering modularity, flexibility and choice, wherever and however consumers want to pay – online, in-store, in-app, mobile and unattended. And we’re constantly innovating, empowering ISOs, software vendors and payment professionals as they embrace the future of fintech.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130019681/en/