Credit Token Business – What to Know?

Credit Token Business – What to Know?

A Credit Token business is defined as any business where a token in the form of a cheque, card, voucher, stamp, booklet, coupon, form or other document or thing is given or issued to a person (referred to as “customer”) by the person carrying on the business (referred to as “issuer”), whereby such issuer undertakes that :-

  • on the issuance of the token, the issuer will in return supply or offer its goods or services and even cash on credit; or
  • where, on the production of the token to a third party,
  • the third-party supplies cash, goods or services, the issuer will pay the third party, in return for payment to be made thereafter to the issuer by the customer.

Benefits of Tokenisation

  1. Tokenisation Minimises Risk from Data Breaches

Businesses dealing with tokenisation mainly accept payments via credit and debit cards and even direct debit from bank accounts. Such businesses over time shall possess its wealth of intelligence in payment information and this in return attracts scammers or hackers to steal such data for fraudulent buys.

Tokenisation helps secure business from the negative financial impacts of a data theft. Even in the case of a breach, valuable personal data shall not be that straight-forward to steal / compromised. Tokenisation cannot 100% safeguard your business from a data breach but it can definitely minimise the financial fallout from any possible breach.

  1. Tokenisation Helps Build Trust with Your Consumers

Consumers want safety and security, on whichever platform that they shop or invest in. In this era where fraud poses threats throughout the economy, developing trust and loyalty with consumers starts with keeping their payment and other personal data in a secured and safe environment.

Beyond avoiding the worst-case scenario of a data breach, using advanced security like tokenisation, builds customers’ trust. Consumers do not want their payments data falling into the wrong hands. Demonstrating a strong commitment to the security of customer data is appreciated by consumers.

  1. Tokenisation Means Less Red Tape / Bureaucracy

Businesses that accept credit and debit cards need to be in compliance with the Payment Card Industry Data Security Standard (PCIDSS). Tokenisation makes achieving and maintaining compliance with industry regulations significantly easier.

Tokenisation addresses safeguarding cardholder data that resides with the seller. PCIDSS seeks to reduce retention of sensitive data and safely govern its storage and deletion. Tokenisation satisfies this critical requirement by never letting sensitive cardholder information touch your systems in the first place. Leading payment technology companies offers tokenisation as part of their Payment Processing Services which allows the seller / subscriber to focus on developing their business while leaving the red tape / bureaucracy and compliance matters to the service provider.

  1. Tokenisation Drives Payment Innovations

The technology behind tokenisation is important to many of the ways we buy and sell today. From secure in-store point of sale acceptance to payments on-the-go, from traditional e-commerce to a new generation of in-app payments, tokenisation makes paying with the devices easier, faster and safer than ever.

The rising popularity of in-store payments with customers’ mobile devices features tokenisation. When consumers pay with a mobile wallet like Apple Pay or Google Pay, their personal credit card data is stored on their phone as a token. Additional security comes from smartphones themselves with the additional layer of biometric security and other advanced authentication measures.

Tokenisation is the epitome to all e-commerce business as it promotes efficiency by making payments safer and enhance user experiences — be it for online, mobile or in-app transactions

 Labuan Credit Token License

QX TRUST license application service level for Labuan Credit Token license include –

  • Consultation on client’s eligibility and application procedures
  • Feasibility study write-up based on client’s profile
  • Due Diligence, Profiling and Guidance on documents preparation
  • Advising on the Business Plan to meet client’s objectives
  • Full guidance on the Financial Forecast, KYC, Operation and AML/CFT Manuals, Client Agreements etc
  • Submission and supervision of application process until approval
  • Act as liaison and key contact person for both client and Labuan FSA on all correspondences, meetings and /or interviews (if any)

Do get in touch with the QX Trust team of consultants at +60 3 9212 6940 or consultant@qx-trust.com to understand the eligibility and processes for a Labuan Credit Token License.