KBC Bank customers using Mastercard credit or debit cards online are to get a new level of security for their transactions by using ‘tokens’ rather than the card’s number.

KBC says it is to implement a new service, called MDES for Merchants, developed by Mastercard. MDES replaces the 16 to 19 digit card number with a token — a unique alternate card number for each transaction — which is submitted to the accepting merchant for authorisation, rather than the customer’s own card details.

KBC said: “By removing real-card data from online payment systems, our customers’ card details will remain protected at all times. Additionally, unlike typical card transactions, digital tokens carry no real value if they become compromised.”

Another feature of the system is that cardholders will no longer have to update their card data with the accepting merchant when their card details change. Instead, the new card details will be updated automatically in the token, allowing payments to continue without interruption.

Mastercard Ireland country manager Sonya Geelon said: “By replacing card data with tokens, cardholder information is no longer visible to retailers, payment service providers and acquiring banks. Instead, each transaction is validated through a unique cryptogram, allowing shops and businesses to execute secure online payments with confidence.  Furthermore, this reduces fraud risk as tokens cannot be used anywhere other than with the intended business’s website.”

In Association with

Visa operates a similar system, Visa Token Service, which also replaces a cardholder’s 16-digit Visa account number with a secure token, and says it has passed the billion-token mark worldwide since introducing the service.