Endeavour Tokenization

Deploy Tokenization with ease with Endeavour Tokenization API

Payment Tokenization has become the standard for securing digital commerce, significantly reducing fraud and increasing transaction approval rates by replacing sensitive card data with unique, non-sensitive identifiers.

How Tokenization Prevents Fraud

Tokenization prevents fraud by ensuring that actual Primary Account Numbers (PANs) are never exposed or stored in a merchant’s environment.

Worthless Stolen Data: Unlike encryption, tokens are randomly generated strings with no mathematical relationship to the original data. If a database is breached, the stolen tokens are “gibberish” and cannot be reverse-engineered to reveal the real card details.
Contextual Binding: Modern tokens can be locked to a specific device, merchant, or transaction type. A token intercepted from one merchant cannot be used to make purchases elsewhere, effectively neutralizing stolen credentials.
Dynamic Authentication: Network tokens often include one-time-use cryptograms for every transaction, verifying that the request came from a genuine device or merchant account.
Proof of Legitimacy: Tokenization creates a secure, verifiable record that helps merchants fight “friendly fraud” by proving the transaction went through legitimate, authenticated channels

Why Tokenization Leads to Higher Approval Rates

Tokenization directly improves authorization logic, leading to fewer false declines and a more seamless experience for recurring billing.

Automatic Credential Updates: When a physical card expires or is reissued, card networks automatically update the associated network tokens in the background. This eliminates declines caused by outdated card information, which is critical for subscription services.
Stronger Trust Signals: Tokenized transactions carry assurance data—metadata that includes device binding and transaction context. This provides issuing banks with higher confidence in the transaction’s legitimacy, leading to a “trusted approval path”.
Reduction of False Positives: Because the overall fraud risk is lower, issuer-side fraud screening is less likely to mistakenly flag and block legitimate tokenized transactions.
Elimination of Entry Errors: By storing tokens for one-click checkouts, the risk of human error (e.g., typos in PAN or expiry dates) that often leads to transaction failure is removed.

Impact on Approval and Fraud (2026 Data)

The shift to tokenization has produced measurable improvements in the global payment ecosystem as of 2026:

Approval Rate Uplift: Visa reports a 4.6% to 5% increase in authorization rates globally using network tokens. Mastercard reports a 3% to 4% increase.
Fraud Reduction: Visa reports a 28% reduction in fraud rates, while some studies show reductions of up to 60% for card-not-present (CNP) transactions.
Industry Trends: In 2026, major networks are shifting tokenization from a “nice-to-have” feature to the default payment rail. For instance, Mastercard plans to fully tokenize e-commerce payments in Europe by 2030