Visa and Mastercard | Reciprocal Tokenization

Jul 24, 2017

Visa and MasterCard are teaming up to make electronic payments safer. More than 6 months ago, Visa Inc. and Mastercard Inc. announced reciprocal access to one another’s tokenization engines.

Reciprocal Tokenization Agreement 

MasterCard and Visa released a statement, according to which the reciprocal tokenization agreement allows Visa to request tokenized MasterCard payment credentials from MasterCard for provisioning into Visa Checkout, and for MasterCard to request tokenized Visa credentials from Visa for provisioning into Masterpass.

Tokenization is the popular security technology that is developed to replace cardholder information, such as account numbers and expiration dates, with a token, a unique digital identifier, that can be used for making payments without exposing sensitive information associated with accounts.

Visa and Mastercard consider reciprocity more than just a fraud-prevention step. Thanks to such strategy, they can broaden the use of their digital wallets, extend access to their tokenization engines to third parties, and be the main token-service providers.

Merchants looking for a reputable payment processor that can help them with consumer fraud-protection issues should consider turning to EMB is voted the #1 high risk processor in the US and boasts an A+ rating with the BBB. In partnership with Verifi and Ethoca, EMB provides unmatched chargeback protection and prevention services for merchants of any type and size. has an A rating with Card Payment Options and is named one of Inc. 500’s Fastest Growing Companies of 2016.

What to Expect?

According to the 2 networks, thanks to reciprocity it’ll be easier for merchants to accept payments initiated through their respective digital wallets, Visa Checkout and Masterpass. Also, thanks to reciprocity, these wallets will turn into truly open payment platforms: only one connection to either network’s tokenization engine will be required.

Tokenization will help wallet providers protect cardholders by substituting randomized character strings for actual primary account numbers and other card credentials.

Reciprocity will enable Visa and Mastercard request tokenized payment credentials from one another for provisioning into Masterpass or Visa Checkout wallets. The networks have already started building out the infrastructure to support reciprocity. The service is expected to be launched on a region-by-region basis across the globe.

Zilvinas Bareisis, a London-based senior analyst for the financial-services consulting firm Celent, notes partnerships will help deal with the complexity of devices appearing in the market. Visa and Mastercard will provide the token, but the partner will provision it on its device as it understands best how the device can be certified and can organize its secure interaction with each payment endpoint.

As for fees, the experts in the field note fees could well be coming.


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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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